PH Digest: Ayala arm buys Phinma Energy; Petron raises $390m in preferred shares

Photo from AC Energy's website.

Philippines conglomerate Ayala Corp said its energy arm, AC Energy, has completed its acquisition of Phinma Energy for about $122 million while Petron Philippines completed its $390-million preferred share offer.

AC Energy completes acquisition of Phinma Energy

AC Energy, the energy sector business arm of the Philippines’ largest conglomerate Ayala Group, announced that it has completed its acquisition of Phinma Group’s combined 51.48 per cent stake in Phinma Energy Corp.

In a disclosure to the Philippine Stock Exchange, Ayala Corp said its power arm bought Phinma Inc’s stake through a secondary share sale for P3.669 billion ($71.4 million) and subscribed to P2.632 billion ($51.2 million) of Phinma Energy’s primary shares at par value.

AC Energy and Phinma Energy teamed up in 2011 to develop, build and operate a 244-megawatt (MW) coal power plant in Calaca town, Batangas province under South Luzon Thermal Energy Corp.

The Ayala-led energy firm had said the acquisition would increase its attributable generation capacity by 240 MW and boost its portfolio for its retail electricity-supply business, as well as help it attain 5 gigawatts of renewables capacity by 2025.

Petron completes $389m preferred shares offering

Petron Corporation, the country’s largest oil refining and marketing company, said it has completed a P20 billion ($389 million) fundraising via preferred shares, marking the company’s biggest preferred shares offering to date.

In a disclosure, Petron, a subsidiary of conglomerate San Miguel Corporation, said the amount represents the base offer of P15 billion and the oversubscription of P5 billion owing to the strong response of institutional investors and trading participants.

Dividend rates per annum on the preferred shares is 6.8713 per cent for Series 3A and 7.1383 per cent for Series B.

The company earlier disclosed that part of the proceeds will be used for the redemption of Petron’s outstanding Series 2A preferred shares issued in 2014. The balance will be utilised for short-term debt repayment and general corporate purposes.