AboitizPower terminates $46m acquisition of Vietnam’s Mekong Wind

The Dam Nai Wind facility, located in Ninh Thuan Province, Southern Vietnam, is among the first successful wind power projects in the country. Photo from AboitizLand

Philippine-listed electricity giant Aboitiz Power Corp (AboitizPower) announced that its planned acquisition of Vietnam’s Mekong Wind has been terminated because some of the conditions of the deal were not met.

“A condition precedent was not delivered, and the completion of the acquisition was not completed by the longstop date under the share purchase agreement,” AboitizPower said.

Mekong Wind, a Singapore-incorporated entity, is the owner of Dam Tai Power JCS, which owns and operates the 39.4MW onshore Dam Naiver Wind facility in Ninh Thuan Province, Southern Vietnam.

Commissioned in late 2017, Dam Nai Wind was one of the first wind power projects in Vietnam to commence operations.

AboitizPower, through its subsidiary AboitizPower International, had intended to take over the Vietnamese wind power firm for about $46 million from Armstrong Southeast Asia Clean Energy Fund, a private equity fund managed by clean energy asset manager Armstrong Asset Management (AAM).

AboitizPower said it is in discussions with AAM to revisit the acquisition at a future date.

Aside from the 40-megawatt wind power plant, Singapore-based AAM also has solar-based power plants in Vietnam with a capacity of 69MW and 48MW.

The deal would have set the tone for AboitizPower’s expansion in the international market, but the firm said the termination of the transaction has no impact on its existing operations and financial performance.

AboitizPower is the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services.

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.

In the Philippines, AboitizPower has been actively acquiring other power firms as part of its domestic expansion. In 2018, 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.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.