Ayala-owned AC Energy Philippines Inc. (ACEN) will be investing P250 million in its subsidiary firm Buendia Christiana Holdings Corporation (BCHC) via shares subscription arrangement.
The company disclosed to the Philippine Stock Exchange (PSE) that it already signed a subscription agreement with BCHC on the deal.
The transaction will cover 2,500,000 redeemable preferred B shares of BCHC that will be acquired by ACEN with a par value of P100 per share.
At date of acquisition, it was stated that “partial payment of subscription price in the amount of P62.5 million “ had to be delivered; while the balance will be settled “upon demand of BCHC with the approval of (its) board of directors.”
BCHC is a special purpose vehicle that will be in charge of land banking ventures for the company’s development projects.
AC Energy President and CEO Eric T. Francia said BCHC’s undertakings will have valuable synergy with the solar farm installations being cast on their project blueprints.
The shares subscription, the energy firm emphasized, shall be subject to the necessary approvals from the Securities and Exchange Commission (SEC), primarily “on the increase in authorized capital stock of BCHC and full payment of the subscription price.”
Solar is one sphere of project developments that the Ayala group has been aggressively pushing for, in line with its target for 5,000 megawatts of aggregate renewable energy capacity through year 2025.
AC Energy already unveiled this year several solar power projects that are of various stages of implementations in the country – chiefly the installations in Alaminos, Laguna; Palauig, Zambales; and those in Arayat and Mexico, Pampanga.
The four solar projects currently under construction will beef up the company’s solar capacity in the Philippines by additional 330 megawatts; while the rest of its major scale installations are in offshore markets.