AC Energy (ACEN) has issued four billion new shares to Arran Investment Pte. Ltd. as part of the Singaporean firm’s private placement in the Ayala-led company.
In a disclosure to the Philippine Stock Exchange, ACEN said that Arran — a subsidiary of Singaporean sovereign fund GIC Private Limited — paid the Ayalas’ power arm a total of Php11.88 billion, or Php2.97/share, upon the completion of the private placement last March 18.
As a result of the transaction, AC Energy now has 19.97 billion and 19.96 billion issued and outstanding common shares, respectively, from 15.97 billion and 15.96 billion shares previously. Foreign ownership in the Ayala-led firm also increased to 22.34% from 2.88% previously.
ACEN will use up to Php10 billion from the private placement to fund some of its renewable energy projects. These include its solar farm joint venture with Citicore Power in Pampanga, the Bayog wind farm project in Burgos, Ilocos Norte, and possible expansion of existing plants.
The company will also use part of the proceeds to repay its debt drawn earlier to finance development funding requirements, as well as to fund working capital requirements, and for general corporate purposes of approximately up to Php500 million.
AC Energy announced in November 2020 GIC’s purchase of a 17.5% stake in the company for Php20 billion, which was finalized towards the end of the year.