Philippines: Ayala’s AC Energy to sell three hydro companies

Conglomerate Ayala Corp is set to divest its stake in three hydro companies that are majority owned by its power generation unit AC Energy Holdings Inc.

Ayala informed the local bourse that AC Energy has signed definitive documents to sell all of its ownership stake in the three companies – QuadRiver Energy Corp, Philnew Hydro Power Corp, and PhilnewRiver Corp to Sta. Clara Group Inc.

Prior to this sale, AC Energy held 70 per cent of the outstanding capital stock in each of the hydro companies, with Sta. Clara holding the remaining 30 per cent.

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The three hydro companies are grantees of several hydropower service contracts from the Department of Energy.

Financial details of the deal were not disclosed.

The latest development follows recent investments made by AC Energy in the power generation space. The company acquired Chevron’s geothermal assets in Indonesia and the Philippines on December 23, 2016, which not only helped it establish a presence in Indonesia but also scaled up its renewable energy platform.

In November last year, AC Energy increased its stake in NorthWind Power Development Corp from 17.79 per cent to 67.79 per cent.

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NorthWind, which developed the first commercial wind farm in Southeast Asia, owns and operates the 52-MW Bangui wind project in Bangui, Ilocos Norte, Philippines.

The Ayala power unit announced last October that it is doubling its energy investments to about $1.6 billion (P80 billion) to achieve its goal of 2,000 megawatts capacity.

Ayala’s last trading price decreased 0.55 per cent or P4.00 on January 3 to close at P726.50 per share.

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