The San Miguel Corp. (SMC) is set to take over the Masinloc power projects after buying out its owners for around $1.9 billion.
A total of $2.4 billion implied enterprise value of the company was recorded in the transaction.
SMC gained a deal for a 51 percent stake in the Masinloc Power Partners Co. Ltd (MPPCL) which is being unloaded by the AES Corp.
The SMC Global Power Holdings Corp. signed a share purchase agreement with the Masin-AES Pte. Ltd. equity holders AES Philippines Investment Pte. Ltd and Gen Plus B.V for $1.9 billion.
Apart from that, SMC also bought out Generating Public Co. Ltd. (EGCO), the partner of AES in the Masinloc plants.
In a statement, EGCO said that it sold its 48 percent stake in the MPPCL for P850 million, which will be used for new investment projects, EGCO president Jakgrich Pibulpairoj said.
“EGCO Group would receive the proceeds of $850 million (THB27.66 billion equivalent) from the divestment upon transaction closing which is subject to the approval of the Philippine Competition Commission and relevant closing conditions agreed by the transaction parties,” Pibulpairoj said.
It was Gen Plus B.V who entered into a share purchase agreement with SMC and AES Phil Investment Pte. Ltd to dispose the 49 percent share of the EGCO group in MPPCL to SMC Global.
EGCO looks to complete the transaction within the first half of 2018.
MPPCL owns, operates, maintains the Masinloc coal-fired power plant with two units, 315-MW each, and a third unit under construction worth 335-MW, and a 10-MW Battery Energy Storage located in Zambales.
“We are happy to be able to acquire Masinloc. The additional power assets provide us an opportunity to increase our footprint in clean coal technology that provides reliable and affordable power, particularly in Luzon. In fact, we have substantially reduced emissions even from our existing power plants to continue promoting the economy’s growth and produce energy in an environmentally responsible way,” SMC president and COO Ramon Ang said.