LOPEZ-LED First Philippine Holdings Corp. on Monday said it has received a second partial award by the International Chamber of Commerce (ICC) on the case filed by its units against SunPower Philippines Manufacturing Ltd.
The company said it received a partial award by the ICC, which found it “appropriate” to reduce the purchase price to be paid by SunPower to First Holdings’s units First Philippine Electric Corp. and First Philec Solar Corp.
It said the tribunal reduced the purchase price of SunPower to First Philec by $7.1 million to $23.2 million, from $30.3 million that it decided earlier this year.
The company said ICC found SunPower to be in “material anticipatory breach” of its obligations to First Holdings under the supply agreement for silicon wafering services that it entered with First Philec Solar.
First Philec Solar is a joint-venture company established by First Philec and SunPower to slice silicon solar wafers for SunPower.
The shares in First Philec Solar currently held by First Philec, 74.54 percent; SunPower, 14.49 percent; and a number of individual shareholders at 10.97 percent.
In the first partial award, the ICC ordered SunPower to purchase First Philec’s shares in First Philec Solar for $30.3 million by February 2, 2015, or such date that the parties may agree on.
“The effect of the second partial award is that [SunPower] is now ordered: to purchase First Philec’s shares in [the joint-venture company] for the price of $23.2 million by August 13, 2015, subject to any extension granted by the arbitral tribunal for the purposes of compliance with applicable governmental and/or regulatory requirements,” it said.
Within 14 days of the completion of the share transfer, it also has to pay First Philec the net sum of $25.24 million, it said.
“The arbitral tribunal will subsequently render a further, final award dealing with the matter of which party or parties will be responsible for the costs of the arbitration, and any further directions which may be required in completion of implementation arrangements,” the company said.