AC Energy (ACEN) has begun the process of divesting from the 540-megawatt GNPower Kauswagan (GNPK) coal-fired power plant in Lanao Del Norte.

In a disclosure to the Philippine Stock Exchange by ACEN’s mother firm Ayala Corporation, the conglomerate’s power arm signed a divestment agreement with Power Partners Ltd. Co. and its affiliated companies last Friday (March 5). Power Partners is ACEN’s developer-partner in the GNPK project.

The transfer, which would cost a base selling price of US$453 million subject to adjustments, will be paid on a deferred basis.

“The transfer will be implemented through the acquisition by Power Partners and its affiliates of offshore companies owned by AC Energy, which offshore companies own partnership interests in Kauswagan Power Holding Ltd. Co., the majority limited partner in GNPK,” the disclosure read.

As part of the divestment agreement, ACEN will also sell the project site to PMR Group Retirement Plan, Inc., the retirement company affiliated with the GNPower companies, for US$15.9 million.

The transaction is subject for the Philippine Competition Commission’s approval.

AC Energy’s divestment from GNPower Kauswagan, approved by the company’s board in December 2018, is part of its goal to rebalance its generation portfolio, as it aims to grow its renewable energy capacity to five gigawatts by 2025. ACEN late last year said that it is dropping coal from its portfolio.

Photo from GNPower website.