The Philippine Competition Commission (PCC) has cleared a shareholders’ deal between AC Energy Philippines Inc. (ACEN) and the Philippine energy unit of Japan-based Marubeni Corp.
ACEN said yesterday that it received on December 1 a copy of the PCC Decision No. 20-M-017/2020 dated November 24. The transaction, noted PCC, “will not likely result in substantial lessening of competition.” As such, the PCC has decided “to take no further action with respect to the proposed Transaction among Axia Power, ACE PH, Endevor and Ingrid Power.”
ACEN is a subsidiary of AC Energy Inc. (ACEI) while ACE Endevor Inc. (Endevor) is ACEN’s wholly-owned subsidiary. They signed last July a shareholders’ agreement with Axia Power Holdings Philippines Corp. (Axia), a subsidiary of Marubeni Corp., for the development, construction and operation of the 150 megawatt (MW) diesel power plant project in Pililla, Rizal.
The diesel power project, known as Ingrid Project, is expected to be operational in the first quarter of 2021.
Under the Agreement, Axia will acquire 50 percent of the shares and 50 percent of the economic rights in the ACEN’s subsidiary Ingrid Power Holdings Inc. (Ingrid), the special purpose vehicle of the Ingrid Project, while ACEN will hold 50 percent of shares and 45 percent of the economic rights, with Endevor having a 5-percent share of the economic rights in Ingrid.
Ingrid and Endevor were among the ACEI subsidiaries acquired by ACEN. As of January 2020, ACEN has infused P570 million into Ingrid to fund the Ingrid Project. Ingrid will have a total subscribed capital of P1.97 billion.
The Ingrid Project is a 150MW high-speed, diesel-fueled power plant project located in Brgy. Malaya, Pililla, Rizal. It will provide ancillary services to the National Grid Corporation of the Philippines. The plant will supply peaking and reserve power to the Luzon grid.
“[ACEN] will have the opportunity to develop a greenfield project which will provide peaking and reserve power in partnership with Axia, which has extensive experience in the local and international power sector,” it added.