AC Energy sets P419M payment to shares subscription from subsidiary

Published June 16, 2021, 2:45 PM

by Myrna M. Velasco

Ayala-led AC Energy Corporation (ACEN) will be paying P419.075 for the shares subscription it sealed with subsidiary firm Buendia Christiana Holdings Corporation (BCHC), a special purpose company engaged in the acquisition of potential project sites.

In a disclosure to the Philippine Stock Exchange (PSE), ACEN indicated that it signed a subscription agreement with BCHC for the acquisition of the latter’s 75,000,000 redeemable preferred A shares with a par value of P0.10 per share.

The transaction further covered additional shares subscription of BCHC’s 4,075,000 redeemable preferred B shares with the par value of P100 per share.

For the preferred A shares, AC Energy has committed to pay P415 million; while for the preferred B shares, the purchase price had been pegged at P4.075 million; and payment shall be consummated at date of acquisition.

“The subscription will be used by BCHC to fund acquisition of potential project sites,” the Ayala firm said, adding that the shares subscription will be issued “out of the increase in authorized capital stock of BCHC.”

The company similarly noted that the shares subscription deal shall be subject to necessary regulatory approvals of the Securities and Exchange Commission (SEC) — primarily the increase in BCHC’s authorized capital stock as well as on the propounded full payment of subscription price.

Fundamentally, BCHC is the subsidiary of ACEN that serves as a corporate vehicle owning the land that will be utilized for the development projects of the Ayala-led energy firm.

AC Energy is one of the most aggressive developers of renewable energy projects in the Philippines – primarily on solar and wind farm developments; and these ventures are strategically sited in various parts of the country.

On top of that, the Ayala company is eyeing this year’s completion of its 150-megawatt Pililla diesel power project that will help meet Luzon grid’s need for peaking capacity. This is its joint venture with Japanese firm Marubeni Corporation.

Beyond robust capital infusion it has been doing on domestic energy projects, AC Energy is also advancing various RE ventures in the Asia Pacific region, including in the key markets of Australia, India and Vietnam.

AC Energy is working on a grand goal of beefing up its RE portfolio to 5,000MW by 2025; and for it to reign as the biggest RE player in the ASEAN region vis-à-vis strong competitors that will likely be coming from Vietnam and Thailand.