AboitizPower completes buyout of El Paso from East Asia Utilities

Aboitiz Power Corp. has completed the buyout of El Paso Philippines Energy Co. from East Asia Utilities Corp. (EAUC), for a total acquisition cost of P816.41 million.

East Asia operates a 50-megawatt power plant in Mactan, Cebu that feeds electricity to the Visayas grid.

In a statement Wednesday, AboitizPower said it bought an additional 50 percent equity in EAUC from El Paso for P509.41 million. The transaction was consummated on June 14, raising AboitizPower's equity stake in EAUC to 100 percent.

In April 2007, AboitizPower acquired a 50 percent equity in EAUC from El Paso for about P307 million.

"The acquisition is in line with AboitizPower's target to increase our net attributable capacity to 4,000 MW by 2020," said AboitizPower President and COO Antonio Moraza.

In a separate disclosure to the Philippine Stock Exchange, AboitizPower said additional revenue from EAUC will contribute to its income stream.

EAUC operates a 50-MW, oil-fired power plant in Mactan.

"The power plant has the capability of providing critical peaking and ancillary services to the Visayas grid," AboitizPower said. – Ted Cordero/VDS, GMA News