Ayala firm AC Energy Corporation (ACEN) has formally secured the go-signal of its stockholders on the infusion of P85.93 billion worth of international assets into its fold — and this will form part of the five-step corporate restructuring plan of the company toward its goal to become the largest renewable energy-listed firm in Southeast Asia.
The approval of the shareholders had been officially affirmed by ACEN Director and Corporate Secretary Solomon Hermosura during the company’s annual stockholders meeting on Monday (April 19); and that was based on the outcome of voting of the majority shareholders.
The international asset infusion into ACEN this year will comprise of 16.68 billion shares valued at P1.15 apiece, as anchored on the approval of the company’s board last month.
That share swap from ACEN’s parent firm AC Energy and Infrastructure Corporation (ACEIC) will cover 1,400 megawatts of capacity-developments in Australia, India, Indonesia and Vietnam.
According to ACEN, once this targeted asset infusion is completed, its attributable capacity will already be ramped up to 2,400 megawatts – and 1,800MW or 77-percent would account for renewable energy sources.
“This puts AC Energy in an excellent position to attain its vision of reaching 5.0 GW (gigawatts) of renewables by 2025, and realize its aspirations of becoming the largest listed renewables platform in Southeast Asia,” AC Energy President and CEO Eric T. Francia said.
And on the country’s anticipated rebound from the Covid-19 pandemic, he emphasized that “our strong balance sheet is complemented by a robust pipeline of renewable projects, and our highly capable and motivated team places AC Energy in an excellent position to play a meaningful role in the green-led recovery.”
The Ayala firm posted P3.75 billion net income last year, which has been touted as a “turnaround performance driven by significantly improved operating efficiencies, reliability and operating margins and the acquisition of additional stakes in local renewable projects.”
AC Energy Chairman Fernando Zobel de Ayala indicated that despite the economic snags suffered by the country and businesses last year, the company still managed to allocate P10 billion in capital expenditures (capex) to underpin new project developments; that in turn, had generated roughly 3,000 jobs for Filipinos.
These projects include the 120MW solar farm with 40 MWh battery storage project in Alaminos, Laguna; the 60MW Palauig solar facility in Zambales; the 150MW diesel peaking plant in Pililla, Rizal; and the renewable energy laboratory in Mariveles, Bataan.
Onward, he noted that ‘sustainable recovery’ is an investment pathway that “AC Energy has made significant progress…and continues to be recognized as a key contributor to sustainable growth and development.”
Early this year, the Ayala company had been on financial shoring up – including its stock rights offering (SRO) which raised proceeds of P5.4 billion; and the capital injection of Singaporean partner GIC that was concretized through a private placement of P11.9 billion – which then beef up AC Energy’s cash hoard by P17.3 billion.
AC Energy emphasized that “the planned infusion of the international assets and the recent fund raising will further grow the company’s balance sheet by about three-and-a-half times.”