Aboitiz Power wins bid for 34% stake in Misamis power plant

Aboitiz Power Corp. on Monday announced that it has won the bidding for a 34-percent stake in STEAG State Power Inc., the owner and operator of a 232-megawatt coal-fired power plant in Misamis Oriental. Aboitiz Power said it tendered a $91.91 million bid for the stake. In a disclosure to the Philippine Stock Exchange, Aboitiz Power said it has signed a share purchase agreement with STEAG State’s parent firm STEAG GmbH, concluding the transaction. Under the terms of the purchase agreement, the sale and purchase of the 34 percent equity should close on or before November 30, 2007, Aboitiz Power said. The PSE has suspended trading of Aboitiz Power shares in order to give participants time to digest the disclosure. “With the conclusion of the share purchase agreement, Aboitiz Power Corp. will become equity partners with majority stockholder STEAG GmbH, which will hold 55 percent of STEAG State Power," Aboitiz Power said. STEAG GmbH is Germany's fifth-largest power firm. The remaining 11 percent in STEAG State is controlled by State Investment Trust Inc. STEAG State enjoys a 25-year power purchase agreement with the National Power Corp. It has also been granted a six-year income tax holiday by the Board of Investments, since it started operations in November of 2006. ING Bank NV was the financial advisor to Aboitiz Power for the acquisition. - GMANews.TV