JAPAN’s Marubeni Corporation is buying a 20 percent stake in a thermal power plant in Batangas jointly owned by AC Energy Holdings, Inc. (AC Energy) and Phinma Energy Corporation (Phinma Energy).
Marubeni, through its subsidiary Axia Power Holdings Philippines Corporation (Axia Power), has entered into an agreement with AC Energy and Phinma Energy to acquire a 20 percent stake in South Luzon Thermal Energy Corporation (SLTEC), AC Energy and Phinma Energy said in separate disclosures to the Philippine Stocks Exchange (PSE) on Tuesday.
AC Energy and Phinma Energy are selling 15 percent and 5 percent stakes, respectively, in SLTEC to Marubeni Group, their statements said.
The agreement with Axia Power reduces Phinma Energy’s ownership in SLTEC to 45 percent and AC Energy’s to 35 percent. The two companies are joint-venture partners in SLTEC.
The transaction value was not disclosed.
SLTEC owns and operates a 2 X 135- megawatt (MW) thermal power plant in Calaca, Batangas, which operates as a baseload plant to meet power demand in Luzon.
“Marubeni’s extensive experience and achievements in power projects in the Philippines has enabled it to participate in a new power project with Phinma Energy Corp., a company of Phinma Group, which is engaged in power generation and electricity supply businesses in the Philippines, and AC Energy Holdings, Inc., a subsidiary of Ayala Group which is one of the largest conglomerates in the Philippines,” Marubeni said in a statement.
“Taking this opportunity, Marubeni, together with Phinma Energy and AC Energy, is exploring jointly developing new power projects in the future and intends to build strong and stable relationships with the Phinma Group and the Ayala Group,” it said.
In the Philippines, Marubeni has participated in several power generation assets, which account for nearly 20 percent of the country’s total installed capacity.
Marubeni said it will utilize its extensive experience and knowledge gained in projects around the world and contribute to development in the Philippines through the provision of stable power supply.
“We are delighted to have a new partner in SLTEC. Marubeni group has extensive experience in thermal power and this should further strengthen our joint venture. The partial sale also allows AC Energy to reinvest more aggressively in new projects as we pursue our 2020 goal of reaching 2000MW,” John Eric T. Francia, president and CEO of AC Energy, said.
“The Marubeni group investment in SLTEC conveys strong validation of confidence in SLTEC’s management team, as well as in the future prospects for reliable and efficient plant operations. Phinma Energy will continue to offer SLTEC’s full output, in line with the company’s growth aspirations as a licensed Retail Electricity Supplier (RES),” Francisco L. Viray, president and CEO of Phinma Energy, said.