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By Euan Paulo C. Ańonuevo Reporter
BIG-NAME firms will slug it out
for the government’s strategic stake in the country’s largest
geothermal energy producing company, according to its parent
state-run Philippine National Oil Co. (PNOC).
Approved by PNOC to bid for the
state’s PNOC-Energy Development Corp. (PNOC-EDC) controlling stake
are San Miguel Corp., Aboitiz Power Corp., Filinvest Development
Corp., First Gen Corp., Alsons Consolidated Resources, One Energy
Ltd., Marubeni Corp., Sumitomo Corp., Basic Energy Corp., Ashmore
Energy, Beleggings-maatchappij Broem B.V., Geysir Green Energy Ltd.,
International Power Plc, and Reykjavik Energy Invest.
Up for gabs is the government’s
remaining 60 percent stake in PNOC-EDC which is expected to fetch
over P36 billion. The government plans to use the sale proceeds to
plug its budget deficit for the year. PNOC for its part intends to
use its proceeds to fund its new and renewable energy projects.
Antonio Cailao, PNOC president,
expressed confidence that the good reception PNOC-EDC’s bidding
generated from the business community will see to it that it “will
fetch a very good price.”
“We are very pleased with our
final list. These are not only the cream of the business community
in the country but a number of them are themselves also leaders in
the energy industry, certified and bonafide—the ‘who’s who’
of Philippine business,” he said.
Under the rules set by PNOC’s
Privatization Committee, a prequalified bidder must have a net asset
value or market capitalization of at least $100 million or must have
an affiliate with the same net asset value or market capitalization
and has entered into a financial support arrangement with such
affiliate.
The bidder must present a letter
issued by a qualified investment-grade bank stating that the lender
is highly confident that the bidder has the ability to fund an
equity investment of not less than $100 million.
Of the sixteen that earlier
submitted prequalification requirements, Fire Jade Capital Holdings
and AEA Investors LLC, Inc. did not meet some of the requirements.
Moreover, eight companies that
pulled out, but earlier submitted their letters of intent to
participate in the bidding, are Africa-Israel-Asia-Pacific, ATN
Holdings, Inc., Kanematsu Corp., Lathan & Watkins LLP, Orix
Corp., Rosalie Dimaano, Suez Energy Asia Co. Ltd., and Triatna
Holdings Corp.
PNOC-EDC is one of the most
profitable companies of the government and its listed shares are
doing very well in the stock market, having more than doubled since
they were listed late last year with an initial price of P3.20.
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