Ayala unit to raise stake in Negros solar farm
By Jordeene B. Lagare
THE Philippine Competition Commission (PCC) approved AC Energy Philippines Inc.’s (ACEPH) acquisition of an ownership interest in San Carlos Solar Energy Inc. (Sacasol), which owns and operates a solar farm in Negros Occidental province.
In a recent disclosure, ACEPH said it received a copy of PCC Decision 05-M-004/2020 dated Feb. 13, 2020, which states that the transaction “will not likely result in substantial lessening of competition” and resolving “to take no further action with respect to the transaction.”
The Ayala Group’s power business unit expects to complete the transaction on or before Mar. 31, 2020.
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ACEPH signed a share purchase agreement with investors of the Philippine Investment Alliance for Infrastructure (Pinai) to acquire the latter’s controlling stake in Sacasol.
Pinai is a fund composed of Macquarie Infrastructure Holdings (Philippines) Pte. Ltd., Langoer Investments Holding B.V., and the Government Service Insurance System.
With the deal, the listed firm would increase its ownership interest in a generating asset that is operating under the feed-in-tariff system of the Renewable Energy Act, which provides incentives to entities for developing renewable energy (RE) facilities in the country.
Sacasol is in the business of owning, operating and developing solar power plants including a 45-megawatt solar farm in San Carlos City, Negros Occidental.
“The acquisition furthers the company’s strategic objective to achieve at least 2 GW (gigawatts) of attributable renewable energy capacity by 2025,” ACEPH said.
“Upon the completion of the transaction, the company will be able to increase its cashflows from the San Carlos solar power plant,” the company said, adding this would enable them “to be in the position to be a major player” in the RE sector.
Source: The Manila Times