Singaporean firm inks P20-B deal for 17.5% stake in AC Energy Philippines

Singapore's GIC Private Limited, through an affiliate, is set to invest P20 billion to acquire a 17.5% ownership stake in AC Energy Philippines Inc. (ACEN), with an investment agreement inked last week.

In a regulatory filing, the ACEN said it, along with its parent company AC Energy and Infrastructure Corp., signed the agreement with Arran Investment Pte. Ltd. — an affiliate of GIC — on December 30, 2020.

"The investment will be implemented through a combination of subscription to four billion primary shares (via a private placement) and purchase of secondary shares from AC Energy," the disclosure read.

The completion of the subscription by Arran to primary shares is subject to agreed conditions such as the completion of ACEN's stock rights offering expected in the first quarter of 2021, and applicable regulatory approvals.

Meanwhile, the completion of the purchase of secondary shares is subject to the completion of the infusion by AC Energy of its international business into ACEN through a share swap expected in the third quarter of 2021.

ACEN and AC Energy tapped AlphaPrimus Advisors acted as financial advisor to for the transaction.

ACEN is engaged in power generation and trading, oil and mineral exploration, development and production. It was formally transferred to the Ayala Group in 2019 after controlling interest was acquired from the PHINMA Group.

Its subsidiaries include Phinma Renewable Energy Corporation, CIP II Power Corporation, One Subic Oil Distribution Corp., One Subic Power Generation Corporation, Phinma Power Generation Corporation, and Phinma Solar Energy Corporation.

It also has stakes in Phinma Petroleum and Geothermal Inc., Palawan55 Exploration & Production Corporation, South Luzon Thermal Energy Corporation, ACTA Power Corporation, and Maibarara Geothermal Inc.

Meanwhile, GIC was established in 1981 to manage Singapore's foreign reserves with over $100 billion in assets in over 40 countries worldwide.—AOL, GMA News