GIC completes private placement in AC Energy

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AC Energy Corporation (ACEN) has announced the completion of Singaporean sovereign fund GIC Private Limited’s private placement in the Ayala-led firm worth Php11.9 billion.

The private placement, done by GIC subsidiary Arran Investment Pte. Ltd. through a subscription to four billion primary ACEN shares, aims to fund the Ayalas’ various energy development and operating projects, as well as potential acquisitions.

ACEN announced its board’s approval of the GIC investment on November 11, 2020. The  Investment Agreement was then signed by GIC, ACEN, and parent firm AC Energy and Infrastructure Corporation (ACEIC) on December 30.

The private placement is the first tranche of GIC’s investment to achieve a 17.5% ownership stake in ACEN. This would be followed by the purchase of secondary shares, or a top-up, from ACEIC.  The top-up will eventually enable GIC to achieve 17.5% percent ownership stake in ACEN, taking into consideration GIC’s expected future dilution, including from the planned infusion of ACEIC’s international assets into ACEN.

With the completion of GIC’s private placement, GIC’s Senior Vice President for Infrastructure Nicole Goh Phaik Khim was elected as director during the board meeting that followed the closing of the private placement.

“We are delighted to welcome GIC to our energy platform. We have been partners in the Bank of the Philippine Islands and we are delighted to build on this relationship in another fast growing and dynamic sector,” Ayala Corporation Chairman and CEO Jaime Augusto Zobel de Ayala said in a statement.

“Ayala and GIC are both committed to sustainable investments, and we are excited to be partners in ACEN as the company transitions to a low-carbon portfolio. GIC provides not only growth capital but also the experience and network that will help us scale up our renewables investments,” AC Energy Chairman and Ayala Corporation President and COO Fernando Zobel de Ayala said for his part.

“GIC is pleased to partner with the Ayala Group, the largest and oldest conglomerate in the Philippines, in their journey to build one of Southeast Asia’s leading renewables platforms. With AC Energy’s geographically diversified portfolio of renewable energy assets and proven track record of profitable growth, we believe the company is well-positioned to capture the shift from fossil-based to clean, sustainable energy in the region”, said Ang Eng Seng, GIC’s Chief Investment Officer for Infrastructure.

The completion of the purchase by the GIC affiliate of secondary shares from ACEIC is subject to the completion of the infusion by ACEIC of its international assets into ACEN by way of a property for shares swap, and applicable regulatory approvals.

AlphaPrimus Advisors acted as financial advisor to ACEN and ACEIC for this transaction.

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