Aboitiz Equity Ventures Inc. (AEV) on Monday said it will sell 25.01 percent of its stake in its power unit for at least $1.46 billion in cash to JERA Asia Pte Ltd., Japan’s largest power generation company.
In its disclosure, AEV said it is selling some 1.84 billion common shares in Aboitiz Power Corp. to JERA.
“The transaction and the resulting interest allow Aboitiz Power to benefit from the experience and expertise of Japan’s largest power generator, and releases significant cash proceeds to AEV that allows it to pursue the Aboitiz group’s growth objectives,” the company said.
JERA will make a onetime payment in cash to Aboitiz Group at the close of the transaction.
The Aboitiz family’s privately held parent company has also agreed to sell an additional 1.99 percent stake in AboitizPower, bringing JERA’s total ownership to 27 percent.
AEV will retain a controlling stake of 52 percent in AboitizPower upon completion of the transaction, down from the previous 77 percent.
AEV said the valuation of the shares was undertaken by JERA following due diligence review of AboitizPower’s assets.
The deal, however, will still have to undergo the approval process of the Philippine Competition Commission and also of AEV’s shareholders through a special stockholders’ meeting called by the company on December 9.
“This transaction unlocks significant capital that will be used toward fueling the AEV group’s growth initiatives. Most importantly, we look forward to the new strategic partnership with JERA as we welcome their trust, expertise, and commitment to help the AEV group drive change for a better world by accelerating Philippine economic growth and promoting the development of clean energy,” AEV President and CEO Sabin M. Aboitiz said in a statement.
AboitizPower and JERA have identified potential areas for collaboration across multiple fronts including joint development of LNG-to-power projects, the fuel sourcing and management of LNG (liquefied natural gas), potential participation in aspects of plant O and M (operations and maintenance), and exploration of the use of new generation technologies.
“We look forward to working collaboratively with JERA to achieve our 10-year vision of increasing our generation portfolio to 9,200 megawatts, by adding 3,700-MW of RE [renewable energy] capacity resulting in a 50:50 balance between our Cleanergy and thermal portfolios,” AboitizPower President and CEO Emmanuel V. Rubio said.
JERA was established in 2015 as an equal joint venture between two major Japanese electric companies—TEPCO Fuel and Power Inc. and Chubu Electric Power Co.
It has a global reach and strengths across the entire energy supply chain from participation in fuel upstream projects and procurement through fuel transportation and power generation.
Looking toward 2025, JERA focuses primarily on energy solutions in two areas—large-scale renewable energy centered on offshore wind power generation and LNG value chains.
To further drive existing initiatives and clarify its long-term vision, JERA established its “JERA Zero CO2 Emissions 2050” objective in October 2020 based on the development of renewable energy and zero-emission thermal power generation using ammonia and hydrogen.