Alsons Consolidated Resources Inc. (ACR) will raise around P2.4 billion following the sale of 50 percent of its subsidiary holding that holds its coal-fired power plant to Global Business Power Corp (GBP).
In a disclosure, ACR said that it will sell 14.95 million shares in the Alsons Thermal Energy Corp. (ATEC) to GBP. This is equivalent to 50 percent with a price of P159.03 per share or around P2.37 billion.
“Following the sale, transfer, and delivery of the ATEC shares to GBP, the issuer’s parent company financial statements will reflect a temporary decrease underinvestment in subsidiary while the cash item will increase substantially,” ACR said.
“The liquidity arising from the sale of a portion of its equity interest in ATEC and the underlying assets will allow ACR to invest in other projects and/or possibly reduce a portion of its debt,” it added.
The total purchase is set to be paid by GBP to ACR on the closing of the deal and a retention of P100 million will be paid after acquiring the Bureau of Internal Revenue (BIR) Certificate Authorizing Registration.
In June, ACR and GBP signed an agreement where Alsons will acquire a 50 percent interest in ATEC for P4.25 billion.
This will allow ACR to speed up its expansion into the renewable energy sector and in other parts of the country.