Phinma Energy Corp. has subscribed to the preferred shares of its renewable energy subsidiary Trans-Asia Renewable Energy Corp. (TAREC) to boost the latter’s capital base.
In a disclosure to the Philippine Stock Exchange on Friday, Phinma said it acquired 750 million shares at P1.00 par value in TAREC.
The subscription will “provide funds to the subsidiary and build up its capital base.”
Phinma made an initial payment of P187.5 million, or 25 percent of the transaction value. The remaining balance will be settled at the call of the board of directors.
“In accordance with Philippine Financial Reporting Standards, no gain or loss will be recognized on the transaction,” the company said.
The transaction’s closing is subject to the Securities and Exchange Commission’s (SEC) approval.
TAREC operates the 54-megawatt (MW), 27-tower wind farm in San Lorenzo, Guimaras.
TAREC Vice President Danilo Panes said they are planning to add 40 MW more in the wind farm and build a wind power project in Nueva Valencia.