PETRON Corp., the country’s largest oil refining and marketing company, said it is reacquiring a 140-megawatt (MW) solid fuel-fired power plant located at the Petron Refinery in Limay, Bataan from sister company SMC Powergen Inc.
In a disclosure to the Philippine Stock Exchange (PSE) on Thursday, Petron said its executive committee has granted it the authority to negotiate, enter into and conclude with SMC Powergen the relevant definitive agreements for the purchase and acquisition of the said plant “under such terms and conditions as management may deem proper.”
Petron Corp. and SMC Powergen, the energy business of SMC Global Power, are both subsidiaries of Philippine conglomerate San Miguel Corporation (SMC).
Petron said its executive committee likewise authorized the company to secure and avail of credit facility agreements to fund the proposed acquisition.
“The Company shall make appropriate disclosures to the Exchange in the event the definitive agreements relating to the contemplated acquisition of the Power Plant and the availment of the credit facilities are concluded with the counter parties,” Petron said.
In September 2013, SMC PowerGen acquired the cogeneration plant of Petron located in Limay, Bataan. The plant added an initial 70MW to the total capacity of SMC Global of 2,615 MW. SMC said in an annual report submitted to the PSE on April 15, 2014 that another 70-MW unit was expected to be commercially available by the second half of 2014.
Petron’s statement on Thursday did not say why it was reacquiring the power plant from SMC PowerGen.-