Philippine Renewable-EDC acquisition deal reflects confidence in PHL economy —Dominguez

The P64.5-billion acquisition deal between Philippine Renewable Energy Holdings Corp. (PREHC) and Energy Development Corp. (EDC) signifies confidence in the country's economic growth, Finance Secretary Carlos Dominguez III said Friday.

"This deal represents the largest voluntary tender offer in our country’s financial history. It is a strong vote of confidence in the direction the Philippine economy is taking," Dominguez said in his remarks during the closing ceremony of the PREHC-EDC deal.

PREHC bought a 31.7-percent stake in EDC for P64.5 billion with a tender price offer of P7.25 per share which reflects a 21.8 percent premium over the last closing price of P5.95 per share before the tender offer was made.

"The conclusion of this tender offer reinforces our policy of building up our renewable energy base. That is good for the environment and good for the economy," Dominguez noted.

"The deal underscores the quality of Filipino firms as well as the reliability of our financial and business policies," he added.
 
PREHC is owned by a consortium of investors. Its funds are managed by Macquarie Infrastructure and Real Assets (MIRA), the world's largest infrastructure assets manager, and Arran Investment Pte. Ltd., an affiliate of Singapore's sovereign wealth fund GIC.
 
The consortium owns and operates renewable energy assets worldwide with a combined installed capacity of over 11 Gigawatts (GW).
 
First Gen Corp., the majority shareholder of EDC, will continue to manage the company.
 
Dominguez noted that EDC will “benefit immensely from the global know-how of  PREHC along with the financial muscle of Macquarie Infrastructure and Real Assets ... I am sure the EDC will continue investing to enlarge the 1.4-GW renewable energy capacity in its portfolio,” he said. — Ted Cordero/VDS, GMA News