AboitizPower signs purchase agreement for 49% voting stakes and 60% interest in Ayala Corp's AA Thermal Inc

Aboitiz Power Corp. has entered into a share and purchase agreement with the Ayala Corporation for the proposed acquisition of a 49% voting stakes and 60% interest in Ayala power unit’s thermal platform under AA Thermal Inc. for a total consideration of $579.2 million investment.

AA Thermal’s assets include AC Energy’s limited partnership interests in GNPower Mariveles Coal Plant Ltd. Co., the owner and operator of the following power plants:

• 632 MW GNPower Mariveles power plant in Bataan - consists of two identical 316MW power blocks using proven Pulverized Coal Combustion technology with Harbin boilers and Harbin turbines and generators.

• 1336 MW GNPower Dinginin power plant in Mariveles -  located in Mariveles (Luzon Island) is a supercritical coal-fired power plant that will consist of two 668 MW units. Construction of the first unit began in January 2017 and is scheduled for completion by 2019. The second unit expected to be completed by 2020.

With the agreement, AboitizPower will increase its beneficial ownership in the Mariveles project from 66.1% to 78.325%, and in the Dinginin project from 40% to 70%. This leaves AC Energy with approximately 28% in both GNPower plants, broken down into eight percent in the Mariveles plant and roughly 20% in the Dinginin plant.

ING Bank N.V. acted as lead financial advisor to AC Energy while BPI Capital provided transaction support to AC Energy.

Standard Chartered Bank, on the other hand, acted as sole financial advisor to AboitizPower.

The transaction is subject to the approval of the Philippine Competition Commission (PCC).