Alsons buys out foreign partner's stake in Mindanao power firm

Alsons Consolidated Resources Inc., the listed firm of the Alcantara Group, is acquiring full control of  Mindanao-based power company Conal Holdings Corp. by buying out its foreign partner’s equity.

 

In a disclosure to the Philippine Stock Exchange on Tuesday, Alsons said it reached an agreement with EGCO International BVI Ltd. to acquire the latter’s 40 percent interest in Conal Holdings.

 

EGCO International is a wholly-owned subsidiary of Thailand’s first independent power producer Electric Generating Public Co. Ltd.

 

Alsons will own 100 percent of Conal Holdings, which has investments in Western Mindanao Power Corp.’s 100 megawatt diesel plant in Zamboanga City, Southern Philippines Power Corp.’s 55 MW diesel plant in Sarangani Provice, and power plant operations and management firm Alto Power Management Co.

The Thai company's  divestment from Conal Holdings does not preclude the possibility of Alsons and EGCO International partnering in future power projects that both parties deem consistent with their specific capabilities and chosen strategies.

 

Alsons said Conal Holdings will house all its power-related interests and allow the holding firm to pursue new projects, not only in Mindanao but in other areas too.

 

The deal allows Alsons to consolidate ownership and control of the Mapalad Power Corp.'s 98 MW Iligan Diesel Power Plant—a recent addition to its energy portfolio.

 

ACR is building new power facilities that include Sarangani Energy Corp.’s 210 MW coal-fired power plant—now under construction in Maasim, Sarangani—and the prospective San Ramon Power Inc.'s, 105-MW coal-fired power plant in Zamboanga City.

 

According to Alsons, EGCO International has chosen to invest in established and operating power projects in the Philippines such as the Quezon power plant in Mauban, Quezon province. — VS, GMA News