ABS-CBN Forums

News Forum => Business => Topic started by: TFC Godfather on December 18, 2012, 11:53:52 AM

Title: Ayala to buy stake in Mariveles power plant
Post by: TFC Godfather on December 18, 2012, 11:53:52 AM
Ayala to buy stake in Mariveles power plant

Posted at 12/17/2012 2:43 PM | Updated as of 12/17/2012 2:43 PM

MANILA - Capitalizing on favorable market conditions, Ayala Corp. is expanding its energy portfolio by acquiring a strategic 17.1% stake in GNPower Mariveles Coal Plant Ltd. Co. (GMCP).

GMCP owns the 2x300MW coal-fired power generating plant in Mariveles Bataan, located north of Metro Manila.

The Philippines' oldest conglomerate on Monday disclosed to the stock exchange that the investment is worth $155 million, which Ayala said it will pay through a combination of cash and credit.

Wholly-owned subsidiary AC Energy Holdings Inc. will be the vehicle for this investment, while J.P. Morgan served as financial adviser on this transaction.

"The Mariveles Power Plant is a major capacity addition that is critical to alleviating potential power shortages in the Luzon grid. It is utilizing pulverized coal technology designed to meet global standards and contributes to Ayala's goal of providing low-cost electricity to the country," John Eric Francia, president of AC Energy, said.

The Mariveles Power Plant is currently undergoing commissioning. The other sponsors of the Mariveles Power Plant are power project developer Power Partners Ltd. Co., and Sithe Global Power LLC, a company owned by investors of the The Blackstone Group.

"We are pleased with the addition of the Mariveles Power Plant to Ayala's growing portfolio of energy projects. We are delighted to be working with Sithe Global Power and Power Partners in this endeavor. 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," said Ayala president and COO, Fernando Zobel de Ayala.

Ayala has about over 300MW in gross capacity under project development namely the 135MW South Luzon Thermal Energy Corp. (SLTEC), 135MW Palm Concepcion Power Corp. (PCPC), 33MW NorthWind Power Corp., which is still awaiting feed in tariff rates, and Quadriver Energy, which is under pilot test, and 35MW Phil New Energy.