Yuchengco-led PetroEnergy consolidates RE businesses

Petroenergy Offshore Wind

Yuchengco-led PetroEnergy Resources Corp. (PERC) is acquiring the stakes of EEI Power Corp. in three renewable energy (RE) firms for P2.69 billion.

As disclosed in the Philippine Stock Exchange, PERC has signed an agreement with EEI Power to acquire its shares in PetroSolar Corp., PetroWind Energy Inc., and PetroGreen Energy Corp. (PGEC).

The company said that the acquisition supports the company’s plan to focus on renewable energy and increase its investments in planned projects and the opportunities that RE offers.

A staggering 213.68 million shares, equivalent to 7.5% interest of the PGEC, will be secured from EEI Power at P2.78 a piece for P594 million.

PERC, by means of PGEC, at present has an operating capacity of 138 megawatts (MW) of renewable energy.

PGEC is a joint venture between PERC, EEI Power, and Kyuden International Corp.

Under the agreement, PERC will acquire 44% or 6.99 million shares of PetroSolar for P1.44 billion, which is a joint investment by PGEC and EEI Power. 

PERC will also acquire 20% or 2.87 million shares of PetroWind for P651.54 million, which is a joint venture involving PGEC, BCPG Wind Cooperative U.A., and EEI Power. Finally, PERC is set to secure EEI Power’s shares in PetroGreen Energy Corp. (PGEC).

PERC is engaged in petroleum production in Gabon, West Africa through the Etame consortium and has a presence in the renewable energy sector in the Philippines through PGEC. 

Meanwhile, EEI Power announced that the proceeds from the transactions will be utilized to reduce the company’s debt obligations and provide capital for new business ventures in both local and international markets.