- Category: Companies
18 Nov 2013
- Written by Lenie Lectura
LOPEZ-led Energy Development Corp. (EDC) signed a share sale deal with Hot Rock Holding Ltd. (HRH) for the former to acquire the geothermal concessions in South America.
“We advise the exchange that EDC, through its wholly owned subsidiary Energy Development Corp. Hong Kong Ltd., together with Hot Rock Holding Ltd., have executed a Share Sale Agreement [SSA] on November 16, 2013,” said EDC.
Under the agreement, EDC HK will acquire all of HRH’s shares in Hot Rock Peru Ltd. (HRP) and Hot Rock Chile Ltd. (HRC). The agreement shall ultimately transfer selected geothermal concessions and authorizations held by HRP and HRC’s affiliates in Chile and Peru to EDC, including its remaining stake in the Quellaapacheta Project.
The sale will be completed upon “fulfillment of several conditions precedent under the SSA.”
HRH, a wholly owned subsidiary of Hot Rock Ltd. of Australia, holds 23 geothermal assets across Chile, Peru and Australia.
Early last year, EDC inked an agreement with HRH that gave the former control over the joint venture’s geothermal projects in South America.
“We are excited with the prospect of developing with Hot Rock Ltd. what we consider as some of the best geothermal concessions in both Chile and Peru. The ability to grow our business with full control over our steam fuel supply is the strategic rationale for the Lopez Group’s acquisition of the controlling stake in EDC,” EDC President and Chief Operating Officer Richard Tantoco had said.
As part of its aggressive growth targets, EDC, on its own, has submitted direct applications for 13 sites and bids for five sites in Chile. EDC is also looking at opportunities to develop geothermal projects in Indonesia, Kenya and Peru.
EDC is the world’s largest integrated producer of geothermal power and the acknowledged global leader in wet-steam technology. EDC is engaged in the exploration, development and optimization of geothermal fields, as well as the operation and maintenance of the geothermal power plants with an aggregate capacity of 1,130 megawatts.