AboitizPower to buy stake in Bataan power plants

Aboitiz Power Corp. (AboitizPower) subsidiary Therma Power Inc. is acquiring indirect partnership interests in coal-fired power plants in Bataan under the funds managed by The Blackstone Group L.P. 

In a disclosure to the Philippine Stock Exchange on Tuesday, AboitizPower noted that Therma Power will ultimately acquire a 66.1 percent beneficial ownership interest in GNPower Mariveles Coal Plant Ltd. Co. (GMCP) and a 40 percent beneficial ownership interest in GNPower Dinginin Ltd. Co. (GNPD).

The acquisition cost of $1.197 billion will be paid once the transaction is completed, subject to certain adjustments and depending on the conditions of the acquisition. Therma Power intends to fund the acquisitions by a combination of internally generated cash and financing from foreign banks.

“The proposed acquisition of the indirect effective interests in GMCP and GNPD is in line with our target to increase our attributable net sellable capacity to 4,000 MW by 2020," said AboitizPower CEO Erramon Aboitiz.

"We consider this acquisition very strategic as it gives us immediate earnings from the operating asset and incremental capacity in the coming years from the plant under construction and its expansion," Aboitiz added.

The transaction is subject to the approval of the Philippine Competition Commission (PCC) and the Board of Investments.

GNPower Mariveles is a 604-MW facility which started operations in 2014, while GNPower Dinginin is a new project which consists of two 668-MW coal-fired power plants.

The first GNPD unit is now under construction is expected to go on commercial operations in 2019.

AboitizPower is the holding company of Aboitiz Group's investments in power generation and distribution as well as retail electricity. — Ted Cordero/VDS, GMA News