Aboitiz Equity Ventures Inc. (AEV) and JERA Co. Inc. have finalized the Japanese firm’s acquisition of a 25.01 percent stake in Aboitiz Power Corporation (AboitizPower), following the turnover of the $1.46 billion payment.

This also comes after the fulfillment of several conditions, including a confirmation of non-coverage from the Philippine Competition Commission and the ratification of the transaction during the AEV Special Stockholders’ Meeting held on Dec. 10.

JERA, Japan’s largest power generation company, acquired a 27 percent stake in AboitizPower, which included a 1.99 percent stake from the Aboitiz family’s privately held parent company, Aboitiz & Company.

AEV, which still owns a controlling stake of approximately 52 percent in AboitizPower, will use the cash proceeds from the sale to fund its long-term growth strategy, including expanding the non-power share in its business portfolio, increasing its overseas activity, and refinancing existing higher cost debt.

Aboitiz Group President and Chief Executive Officer Sabin M. Aboitiz said the JERA deal is another significant milestone in the company’s history, and an exciting new phase in its continuous transformation and evolution.

“The partnership leverages JERA’s experience and expertise for AboitizPower... It expands our network outside the country and increases our optionalities,” he said.

He added that, “We have been contributing to our country's economic growth for over 100 years, and promoting clean energy represents the next chapter in our history of driving change for a better world.” JERA, for its part, welcomes the strong partnership with the Aboitiz Group.

“We are excited to establish a strong partnership between JERA and AboitizPower, which we believe will leverage the strengths of both companies and unlock new growth opportunities,” said JERA President Satoshi Onoda.

He added that, “As the Philippines continues to experience rapid economic growth and increased electricity demand, we will work together to meet these needs and develop additional clean and renewable electric power generation capacity.”

JERA, which is currently operating in more than 10 countries with a total portfolio of 80 Gigawatts (GW), is operating large-scale Renewable Energy such as wind power energy and Liquefied Natural Gas (LNG) and is considered one of the largest LNG purchasers in the world.

The Japanese firm has expertise in the development of RE and zero-emission thermal power generation using ammonia and hydrogen, as well as development of a Zero CO2 Emissions 2050 roadmap.

AboitizPower and JERA have identified potential areas for collaboration across multiple fronts including joint development of LNG-to-Power projects, the fuel sourcing and management of LNG, potential participation in aspects of plant O&M, and exploration of the use of new generation technologies.