NEWS

Government of Singapore sovereign wealth fund GIC has made an acquisition offer of USD 420 million for a 17.5% interest in AC Energy Philippines, a subsidiary of thermal energy company AC Energy and Infrastructure Corporation.

GIC has made its offer for the stake in Philippine Stock Exchange-listed AC Energy Philippines via an affiliate company, Arran Investment.

AC Energy and Infrastructure Corporation is itself a subsidiary company of Ayala Corporation, a company focused on investments in renewable energy, greenfield or brownfield projects and conventional technologies.

The transaction, which was approved by AC Energy’s board of directors in November and signed in December, will be implemented via a mixture of subscription shares under a private placement, and the purchase of secondary shares from AC Energy.

It is expected that the deal will close in the first quarter of this year, subject to receiving certain regulatory approvals and meeting various closing conditions.

The completion of the secondary shares purchase is subject to AC Energy integrating its international business under the AC Energy corporate umbrella via a property-for-shares swap, expected to complete in the third quarter of 2021.

AC Energy has invested and committed equity of USD 2 billion in renewable and thermal energy in the Philippines and the region. The company’s goal is to exceed 5 GW of renewables capacity and create a minimum of 50% of its energy output via renewable sources by 2025.

Latham & Watkins acted as legal counsel to GIC, employing a team of lawyers led by partners Mark Cooper and Sharon Lau, who were assisted by Singapore associates Charles Anderson, Liang Zhen Ong and Carolyn Wong, and Hong Kong associate Kirsten Gao.

AlphaPrimus Advisors acted as financial advisor to AC Energy.

Recently, GIC also with United States real estate investment company Kennedy Wilson to explore urban logistic property opportunities in the United Kingdom.

Source: ICLG.com