In a disclosure to the Philippine Stock Exchange, AboitizPower said it will acquire Mekong Wind from Armstrong Southeast Asia Clean Energy Fund, a private equity fund managed by clean energy asset manager Armstrong Asset Management.
The acquisition involves all legal and economic interests in Mekong Wind, which holds a 99.99 per cent direct interest in Dam Nai Wind Power JSC, the owner and operator of a 39.4-megawatt onshore wind power facility in Ninh Thuan province in southern Vietnam.
Commissioned in late 2017, Dam Nai Wind was one of the first wind power projects in Vietnam to commence operations.
In June, DealStreetAsia had reported that Armstrong Asset Management was seeking to sell a controlling stake in its wind power plant in Vietnam. Aside from the 40-megawatt wind power plant, the Singapore-based private equity firm also has solar-based power plants in Vietnam with a capacity of 69MW and 48MW.
The transaction is a milestone for AboitizPower and sets the tone for the company’s expansion in the international market, according to AboitizPower President and CEO Erramon I. Aboitiz.
“We have announced our intentions to go international some time back and we have been prudent in looking for the right opportunity that will bring the best value for the company and our shareholders. This is such a transaction,” he said.
AboitizPower is the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services. The acquisition will be carried out via its wholly owned subsidiary, AboitizPower International.
Together with its partners, AboitizPower generates around 1,200 MW of clean and renewable energy from its portfolio of hydro, geothermal, and solar power plants.
“We are excited for this opportunity not only to expand beyond the Philippines but to also bring our experience in the power generation sector, especially in the renewable energy space, to Vietnam,” AboitizPower chief operating officer Emmanuel V. Rubio said.
In the Philippines, AboitizPower has been actively acquiring other power firms as part of its domestic expansion. Last year, it agreed to acquire equity interests in AA Thermal Inc, the thermal energy platform of Ayala Corporation’s AC Energy in the Philippines, for $579.2 million.
It also completed its takeover of a 59-megawatt solar project in the country after acquiring 100 per cent equity interest in SunEdison Philippines BV, its local solar joint venture partner.