Ayala-led AC Energy (ACEN) is investing Php415 million in one of its subsidiaries to acquire potential project sites, otherwise known as landbanking.
In a disclosure to the Philippine Stock Exchange on Wednesday, the company said it signed a subscription agreement with wholly-owned subsidiary Buendia Christiana Holdings Corporation (BCHC) by purchasing 75 million Redeemable Preferred A Shares at Php0.10 apiece and 4.075 million Redeemable Preferred B Shares at Php100 per share.
The transaction between AC Energy and BCHC, ACEN’s special purpose vehicle for landbanking took place on Tuesday and is still for the Securities and Exchange Commission’s (SEC) approval.
Last week, the SEC approved AC Energy’s doubling of its authorized capital stock to Php48.4 billion from the previous Php24.4 billion. This would pave the way for the asset-for-share swap with AC Energy and Infrastructure Corporation.
The capital stock hike, which was approved by ACEN’s board last year, is also seen to provide added room for future fundraising activities for new ventures and other acquisitions.
The SEC’s approval also provides for the increase in the number of shares exempted from the pre-emptive right of existing shareholders from the previous 16-billion cap to 24 billion.
AC Energy recently tapped GE Renewable Energy to install wind turbines in its 88-megawatt (MW) Vietnam wind farm project. Locally, it announced in May that it will start constructing a new 160MW wind farm in Pagudpud, Ilocos Norte, while it began operating its 63MW solar farm in Palauig, Zambales last April.
The projects are part of the company’s bid to build a renewables portfolio of 5,000MW by 2025.