AC Energy Philippines, Incorporated, announced that it is buying a wind farm located in Pagudpud, a municipality in Ilocos Norte.
The publicly listed company released a disclosure to the Philippine Stock Exchange yesterday. It explained that the acquisition would offer substantial support to the company.
Gaining control of the 81-megawatt facility will serve as AC Energy’s growth platform, the firm said.
Furthermore, the company relayed that this undertaking would help them in realizing two gigawatts of renewable energy capability.
The business group aims to achieve this goal in five years. AC Energy will get an effective common equity ownership in North Luzon Renewable Energy Corporation (NLREC) amounting to 15-percent.
Moreover, it will possess a 31-percent effective preferred equity ownership of the wind farm operator. NLREC operates in the northern part of the Philippines.
Plus, AC Energy affirmed that their latest venture would provide them the opportunity to earn stable dividend income.
These earnings would come from possessing the authority to operate the power facility, according to the Philippine daily newspaper The Philippine Star.
With these benefits for the firm, publicly listed company has decided to pour in more than P2.5 billion to Giga Ace 1 Incorporated.
The company cited that it has inked a subscription agreement with Giga Ace 1.
As it targets obtaining the possession of the Pagudpud wind farm, AC Energy performed the endeavor to subscribe to the fundraising venture of Giga Ace 1.
The capital-raising activity will involve shares issued. Under the agreement, AC Energy will subscribe to 43.07 million common shares.
Besides, it would subscribe to Class A redeemable preferred shares totaling to 53.56 million. Finally, the company will buy 75,000 common shares.
Giga Ace 1 would issue the latter out of the authorized capital stock that is unissued.
Moreover, it will use this capital-raising undertaking to finance its accession of the Philippine Investment Alliance for Infrastructure (PINAI) investors’ ownership interest.
This investors group possesses ownership interest in Philippine Wind Holdings Corporation (PhilWind).
AC Energy remarked that Giga Ace 1 would, then, obtain that stake. Meanwhile, PhilWind is the umbrella organization of NLREC.
It, directly and indirectly, controls 67 percent of the wind farm operator.
As for PINAI, it consists of Macquarie Infrastructure Holdings Private Limited (Philippines) and the Government Service Insurance System.
Also, Langoer Investments Holding BV makes up this investors group.
In November 2019, AC Energy inked an agreement with the investor members of the PINAI.
Under this deal, the company will receive its stake in NLREC. The amount of the agreement is reportedly P2.7 billion.
Also, PINAI will sell all of its shares in PhilWind to AC Energy. The Philippine Competition Commission had already cleared the contract earlier this month.
On Thursday, February 27, 2020, AC Energy Philippines, Incorporated (PSE: ACEPH) closed at P2.10.
This last trade price of the company’s stock is up P0.01 or 0.48 percent. Furthermore, the total value reached P7,122,260.00.
The 52-week high of AC Energy is at P3.06. Meanwhile, the Philippine Stock Exchange recorded the firm’s 52-week low at P1.29.
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