Aboitiz Power reports use of IPO proceeds

MANILA, Philippines - Listed Aboitiz Power Corp. (AP) has already used two-thirds of the capital that it raised from its initial public offering last year. In a statement to the Philippine Stock Exchange, AP said it had already spent P6.673 billion as of the end of June from the P9.64 billion that it raised from its maiden offering. The company said it spent P5.46 billion for investment in capacity expansion, including potential acquisitions of power generation facilities; mostly for the P4.405-billion acquisition of STEAG State Power Inc., which operates a coal-fired power plant in Mindanao. The amount that AP used for acquisition of power generation plants exceeded its projected capital allotment for such purpose by P1.01 billion. The company has also spent P876 million for the development of greenfield projects and some P270 million for the purchase of additional equity in existing distribution utilities. "AP purchased the remaining 20-percent stake in Subic Enerzone Corp. for P92 million and the acquisition of the remaining 40-percent in Balamban Enerzone Corp. for approximately P178 million in March 2008. The two acquisitions resulted to AP's 100-percent ownership in both SECZ and BEZC as of the first quarter of 2008," the company added. Meanwhile, it had used P66.85 million for its general corporate requirements. GMANews.tv