Trans-Asia Oil and Energy Development Corp. is buying out Holcim Philippines Inc.’s (Holcim) stake in their power joint venture called Trans-Asia Power Generation Corp. (TAPGC).

Both companies disclosed to the Philippine Stock Exchange on Wednesday the share purchase agreement that was agreed upon.

“Holcim today [Wednesday] signed a share purchase agreement for the purchase by Trans-Asia of Holcim’s 50- percent stake in TAPGC,” the two companies’ disclosure said. Nothing else was disclosed.

TAPGC, a joint venture between Trans-Asia and Holcim, owns and operates a 52-megawatt (MW) power plant in Norzagaray, Bulacan. In early December, Trans-Asia entered into a subscription agreement with several investors covering P400-million worth of shares, which will be used to finance the firm’s 134-MW South Luzon Thermal Energy Corp. (SLTEC) investment.

“Proceeds from the private placement will be used by the company for its equity investment in the second 135-MW unit of SLTEC’s clean coal-fired power plant and possible investments in other power project opportunities,” said Giles Katigbak, strategic planning manager of Philippine Investment-Management Inc., the firm that owns Trans-Asia.

He said that these refer primarily to privatizations of the Power Sector Assets and Liabilities Management Corp., which under the Electric Power Industry Reform Act is mandated to privatize all state-owned power assets.

“Excess proceeds may also be used for other general corporate purposes,” he added.