Ayala buys stake in Bataan coal plant
MANILA, Philippines - In line with its aim to become a major energy producer in the next 5 years, Ayala Corp. is adding another coal-fired power plant in its portfolio.
In a disclosure to the Philippine Stock Exchange on Monday, December 17, the country's oldest conglomerate said it has agreed to buy, through unit AC Energy Holdings Inc., a 17.1% stake in GNPower Mariveles Coal Plant Ltd. Co. (GMCP) for US$155 million.
GMCP owns a 600-megawatt coal-fired power plant that is undergoing commissioning in Mariveles, Bataan.
Additional capacity from the Mariveles plant is critical in alleviating a potential power shortage in the Luzon grid, said Ayala managing director and AC Energy president John Eric Francia.
"Our investment reflects the Ayala group's support for the energy and infrastructure needs of our country and our confidence in its bright growth prospects," added Ayala president and COO Fernando Zobel de Ayala.
Ayala hired J.P. Morgan as financial advisor for the transaction, which is "subject to lenders' consent and other customary closing conditions."
Ayala has been investing in power projects around the country to build 1,000 MW of capacity in the next 5 years. Around 20% of this capacity will come from renewable energy projects, the company previously said.
Ayala has a solar energy joint venture with Mitsubishi Corp. in Davao del Sur, as well as a wind power venture with Northwind Power Development Corp. in Bangui, Ilocos Norte.
The deal on the Mariveles coal plant follows one signed by the company with A Brown Co. Inc. for a 135-MW coal plant in Iloilo. - Rappler.com