Ayala-led ACEN Corporation has sold its Power Barge 101 facility in Iloilo to MORE Power Barge Inc., a power generation firm of businessman Enrique Razon.
The Ayala energy firm disclosed at the Philippine Stock Exchange (PSE) on Wednesday, Dec. 22, that it signed an asset purchase agreement with MORE Power Barge for the sale of its 32-megawatt Power Barge 101 facility which is sited in Barangay Obrero in Iloilo City.
“Closing of the sale is expected to be completed in the first quarter of 2022, subject to satisfaction of agreed conditions precedent, which include appropriate regulatory approvals,” ACEN emphasized.
As of press time, the parties-in-interest have not revealed yet the divestment value of the Ayala firm’s oil-fired power facility to the Razon group. The plant has four electric generating units of 8 megawatt capacity each.
Power Barge 101 was previously owned by state-run National Power Corporation (NPC); and it was privatized by the Power Sector Assets and Liabilities Management Corporation (PSALM) in 2015 through a bid process that was won by Trans-Asia Oil and Energy Development Corporation of the PHINMA Group.
The ownership changeover to ACEN happened in 2019, following the sale of PHINMA’s energy business unit to the Ayala group – and the Power Barge 101 plant had been among the facilities turned over to AC Energy Corporation.
The Ayala group has been strategically ramping up its investments in renewable energy as well as innovative clean energy technologies, hence, it has been calculatedly unloading its thermal power assets.
For the Razon group, its acquisition of the Power Barge 101 generating facility will be highly beneficial because that can be integrated into its power distribution business in Iloilo via its corporate vehicle MORE Electric and Power Corporation.
Apart from its power distribution venture in Iloilo, the energy investment arm of the Razon group via Prime Infrastructure Holdings Inc. has also been setting its sights on RE installations, with key developments and acquisitions currently centered in the Luzon grid.
The Razon group’s foray into power is not something new – having won previously the 25-concession deal for the National Grid Corporation of the Philippines (NGCP); although that was subsequently unloaded in 2010 to the Sy group.
With the current developments in the power sector and on the industry’s further restructuring, the Razon group is considerably re-taking its baby steps when it comes to energy investments.