SPC Power Corporation and its affiliate Intrepid Holdings Inc. (IHI) will no longer acquire German firm Steag GmBH’s 51% stake in STEAG State Power Inc – the operator of the 210-megawatt (MW) Mindanao Coal-fired Power Plant in Villanueva, Misamis Oriental.
In a disclosure to the Philippine Stock Exchange on Friday, SPC Power said that the involved parties “mutually agreed to terminate the sale and purchase agreement” as they were not able to satisfy the conditions of the sale.
“It has been determined, however, that securing completely the satisfaction or waiver of the conditions precedent is highly unlikely,” the company said in its disclosure.
SPC Power and IHI earlier disclosed the planned acquisition back in February. Under the deal, SPC Power was supposed to acquire 40.5%, while IHI would have gotten 10.5% for $52 million (around Php2.67 billion). The Mindanao coal plant was developed in 2006 with the National Power Corporation (NAPOCOR) as its original counterparty to the facility’s 25-year power purchase agreement (PPA).
The PPA was then passed on to the Power Sector Assets and Liabilities Management Corporation, NAPOCOR’s successor company under Republic Act 9136 or the Electric Power Industry Reform Act (EPIRA).