AP Corp. ramps up power plant stakes

Aboitiz Power Corp. (AP Corp.) has acquired a majority stake in GNPower Mariveles Coal Plant Ltd. Co. (GNPower – Mariveles) and a minority interest in GNPower Dinginin Ltd. Co. (GNPower – Dinginin), the company reported to the bourse.

The acquisition is in line with AP Corp’s target to increase its attributable net power generation capacity to 4,000 megawatts (MW) by 2020.

AP Corp’s board approved the purchase deal since last September 5.

“The consideration amounting to $1.197 billion will be paid upon completion, subject to certain price adjustments at closing depending on conditionalities. The final amount of consideration will be calculated on completion,” AP Corp stated.

The number of shares to be acquired will be 100 percent interest of World Power Holdings, L.P., 100 percent  interest of World Power Holdings GP, Ltd., 100 percent interest of Sithe Global Power, L.P., 100 percent interest of Sithe Global Power GP, Ltd.

The terms of payment is in cash and to be fulfilled at closing date according to AP Corp.

Therma Power Inc. (TPI), the holding company and wholly-owned subsidiary of Aboitiz Power and the holding company of the Aboitiz Group’s investments in non-renewable energy, entered into Purchase and Sale Agreements for the acquisition of the partnership interests held by affiliated investment funds of The Blackstone Group LP in World Power Holdings LP and Sithe Global Power LP.

World Power Holdings LP is a Cayman Islands exempted limited partnership, indirectly through its wholly-owned subsidiaries, holds ownership interest in GNPower – Mariveles.

GNPower – Mariveles is the owner of Mariveles subcritical coal-fired power plant including all associated and auxiliary assets. The plant, which consists of two units totaling 604 MW, started operations in 2014.

Sithe Global Power LP, a limited partnership, indirectly through its wholly-owned subsidiaries, holds ownership interests in GNPower – Dinginin, the project company established to develop, finance, design, engineer, construct, complete, maintain, own and operate the proposed supercritical coal-fired power project located in Bataan.

The plant is currently under development and consists of up to two units, each with a capacity of 668 MW, including all associated and ancillary and auxiliary assets.

TPI intends to fulfill ultimately acquiring a 66.1 percent beneficial ownership interest in GNPower-Mariveles and a 40 percent beneficial ownership interest in GNPower – Dinginin.

“The parties expect to close the acquisition deal upon the approvals from the Philippine Competition Commission (PCC), and the Board of Investments (BOI) for GNPower – Mariveles,” AP Corp said.

“Subject to submission of a copy of the PCC approval, BOI approved the acquisition of GNPower Mariveles on November 21, 2016. On December 19, 2016, PCC approved the acquisition of the Target Companies,” it added.

The acquisition will increase the attributable capacity of AP Corp, with the possibility of further expansion, the company reported.