The Aboitiz Power Corporation has acquired a 35.4% equity stake in STEAG State Power Inc. (SPI), a local subsidiary of German company STEAG CmbH, which runs a 210 megawatt (MW) coal-fired power plant in Misamis Oriental.
In a disclosure to the Philippine Stock Exchange (PSE), AboitizPower said that the stake is valued at $36.1 million (around Php2.1 billion), “plus locked box interest at a simple rate of four percent per annum.”
“This is a good opportunity to help sustainably manage an existing generation facility, which is a vital component of the Mindanao grid and provides affordable and reliable power to many Filipinos. Since this is an existing generation facility, there are no emissions added to the total GHG emissions of the Philippines,” AboitizPower said in a statement.
SPC Power Corporation and Intrepid Holdings Inc. were supposed to acquire the 51% stake in SPI but decided to terminate the sale and purchase agreement earlier in May.
After completing the necessary corporate and regulatory approvals, AboitizPower’s stake in SPI will jump to 69.4%. Meanwhile, STEAG’s shares will decrease to 15.6%, and La Filipina Uy Gongco Corp.’s shares remain at 15%.
AboitizPower is spending around Php190 billion in the next decade to add 3.700 MW of renewable energy to its portfolio, as it aims for a 50:50 balance between RE and thermal capacities by 2030.