By MYRNA M. VELASCO
Ayala firm AC Energy Philippines Inc. (ACEPH) will be investing ₱1.86 billion in a solar corporate vehicle subsidiary via subscription of common and preferred shares.
The cash to be funneled by ACEPH parent firm will bankroll the subsidiary-firm’s proposed 120-megawatt solar power plant installation in Alaminos, Laguna.
ACEPH said it inked an agreement with subsidiary SolarAce1 Energy Corporation (SolarAce1) for the subscription of the latter’s 6.0 million Class A common shares; and 180 million Class A redeemable preferred shares.
“The subscription will be used to fund initial works to start the construction of the plant,” the Ayala energy firm has noted. Construction kick-off is slated this 2020 and project completion is targeted next year.
The shares subscription had been priced at ₱10.00 per share. The redeemable preferred shares accounts for 25.83-percent fraction of the SolarAce1’s total shareholdings.
The terms of payment for the ₱1.86 billion worth of shares subscription, as set out, entails “full payment for the common shares and 35% payment for the RPS (redeemable preferred shares) amounting to ₱699,963,160.36.”
For the balance on the RPS, AC Energy indicated that such “will be paid in full within the year,” while adding that conditions precedent to the transaction would include necessary regulatory approvals from the Securities and Exchange Commission (SEC) on the increase of SolarAce1’s authorized capital stock.
AC Energy qualified that SolarAce1 had been among the subsidiary companies fixed up for acquisition by the parent energy firm through a share swap – and such is now undergoing regulatory approvals.
The Alaminos solar facility installation is one of the renewable energy projects that the Ayala group will be advancing to construction phase this year – the other one is the proposed 60MW Palauig solar power plant in Zambales.
These are among the RE investments of the company that it has been advancing for the Renewable Portfolio Standards (RPS) policy of the government – enabling ACEPH then to offer green capacity for the prescribed RE percentage procurement of the distribution utilities.