Harbor Star made the transaction through its wholly-owned subsidiary Harbor Star Energy Corp (HSEC), which entered into definitive agreements for the purchase of 45 per cent of the issued capital stock of ADGI from existing shareholders, and subscription to primary shares, for an aggregate amount of $6.3 million to own up to 60 per cent of ADGI.
Founded in January 2014, ADGI is a stock corporation engaged in the business of generating power derived from solar energy and other viable sources of renewable power. It is also engaged in the business of selling through wholesale the electric power it generated to private electric utilities, electric cooperatives, the spot market and, and other consumers.
“The acquisition of ADGI is expected to provide additional revenues to the company,” Harbor Star said in its statement.
Harbor Star is primarily engaged in ocean towage, commerce and navigation in the carriage of goods and passengers through various waterways in different ports locally and abroad.
ADGI has permits, licenses and entitlements to operate 25MW and expandable to 75MW solar power plant in General Santos City in Mindanao. It has been issued a certificate of commerciality by the Department of Energy and has an existing ERC-approved Power Purchase Agreement (PPA) with South Cotobato II Electric Cooperative Inc or SOCOTECO II.
“Under the PPA, SOCOTECO-II will purchase all the energy output from the project. The construction of the initial 25MW solar power plant will be completed by the second quarter of 2018,” Harbor Star added.
Harbor Star’s entry in the energy sector is part of its strategy to diversify its business interests.
By investing in solar power and General Santos City, Harbor Star noted it positions itself in the energy sector of the future and a territory where major development will be seen in the next 10 years.
Harbor Star’s last trading price increased 23.47 per cent or P0.73, closing at P3.83 per share on Friday (November 24).