Singaporean sovereign fund GIC Private Ltd. will begin the initial phase of its investment in AC Energy (ACEN) through an Php11.9-billion private placement slated for March 18.
In a disclosure to the Philippine Stock Exchange on Wednesday, ACEN said the investment involves the issuance of four billion common shares at Php2.97 apiece for a total of Php11.88 billion to GIC affiliate Arran Investment Pte. Ltd.
“The value or consideration per share for the Private Placement was determined by Arran after conducting a due diligence exercise on ACEN’s existing business and potential,” the disclosure read.
Once the private placement is completed, Arran will own 20.04% of AC Energy’s issued and outstanding common shares. In effect, this will decrease ACEN’s public ownership from 24.96% to 19.96% and increase foreign ownership level from 1.31% to 21.75%. The listing of GIC’s common shares is subject to shareholders’ approval during the company’s annual stockholders meeting on April 19.
“The Private Placement will enable ACEN to raise additional capital to fund its various developmental and operating projects, as well as potential acquisitions. The entry of Arran as an institutional investor will also strengthen ACEN’s investor base,” the Ayala-led firm further said.
AC Energy will use up to Php10 billion from the investment to fund some of its renewable energy developments in the pipeline. 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.
Ayala’s power arm 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, estimated to be used as early as this March.
AC Energy announced in November 2020 that GIC is purchasing a 17.5% stake in the company for Php20 billion, which was finalized towards the end of the year.