Kyuden International Corp. (KIC), a wholly-owned subsidiary of Japan’s Kyushu Electric Power Co. Inc., is taking in a 25-percent interest in PetroGreen Energy Corp. (PGEC), the renewable energy (RE) arm of Yuchengco-led PetroEnergy Resources Corp. (PERC).
In a disclosure Thursday, PERC said the board approved the signing of a Share Subscription Agreement and Shareholders’ Agreement with KIC. The deal involves the issuance of primary shares by PGEC in favor of KIC. The shares are equivalent to a 25-percent equity stake in PGEC upon completion of the conditions precedent for the transaction. This will effectively reduce PERC’s interest in PGEC from 90 percent to 67.5 percent.
The board approval was secured during a meeting held September 15.
Incidentally, EEI Power Corp. said the transaction will effectively reduce its stake in PGEC to 7.5 percent.
“EEI Power Corporation, a wholly-owned subsidiary of EEI Corporation, entered into a Shareholders’ Agreement with KIC, wherein KIC will acquire a 25 percent interest in PGEC. Upon completion of the conditions precedent for the transaction, EEI Power’s interest in PGEC will be reduced from 10 percent to 7.5 percent,” it said separately.
PERC is engaged in petroleum exploration and production in Gabon, West Africa and RE development in the Philippines. PGEC operates five power stations in the country through three operating companies – the 32MW Maibarara geothermal project by Maibarara Geothermal Inc., the 70MW Tarlac solar project by PetroSolar Corp., and the 36 MW Nabas-1 wind project by PetroWind Energy Inc.