ABC Energy Inc., an energy subsidiary of A Brown Company Inc., has completed its acquisition of a 40-percent stake in Alternergy Tanay Wind Corp. (ATWC) and Alabat Wind Power Corp. (AWPC) for P2.3 billion.
ATWC and AWPC are subsidiaries of Alternergy Holdings Corp., which will retain a 60-percent majority interest in the two firms.
The deal was closed on Monday after A Brown decided to complete the purchase ahead of the commercial operations of both projects.
The deal, which was cleared by the Philippine Competition Commission last March, was executed through a combination of subscription and purchase of shares in ATWC and AWPC.
The 128-megawatt (MW) Tanay wind power project in Rizal is now 89 percent complete and is in the final stages of commissioning, with commercial operations expected to begin in October. Meanwhile, the 64-MW Alabat wind power project in Quezon has reached 83 percent completion and continues to progress toward commercial operations.
The Tanay and Alabat projects are the first among those awarded under the Department of Energy’s Green Energy Auction Program II (GEAP II) to reach advanced stages of development. Once operational, both projects are expected to contribute significantly to the country’s renewable energy targets and energy security agenda.
AlphaPrimus Advisers and Astris Finance were named joint financial advisors to Alternergy, Mabuhay Capital as financial advisor to ABC Energy.
‘We are delighted to complete this landmark transaction and welcome A Brown as a
strategic partner,’ said Gerry Magbanua, president of Alternergy Holdings Corp. ‘Their decision to complete the investment ahead of commercial operations of both projects underscores their confidence in Alternergy’s renewable energy platform and long term growth strategy.’
Alternergy said the P2.3-billion investment demonstrates its ability to attract strategic partners and supports the company’s capital recycling strategy as it accelerates the expansion of its renewable energy portfolio across the Philippines, including wind, solar, run-of-river hydro, and battery energy storage systems.
Last March, Alternergy announced that its board approved the filing of a 5-year shelf registration of up to P5 billion for the future public offering of its green perpetual preferred shares.
Magbanua said a shelf registration will provide flexibility in future capital raising. In a nutshell, a shelf registration allows a company to sell securities over a future period, without separate registration for each offering, when market conditions are favorable.