ACE Enexor Inc. (ACEX), the oil and gas unit of the Ayala group, has inked a deed of assignment with parent firm ACEN Corporation for the former’s issuance of shares of stocks to effect the transfer of the latter’s thermal assets to the subsidiary.
The equity shares and facilities to be acquired by ACEX via shares issuance will include those of the Palawan55 oil and gas exploration venture; the Bulacan power generation facility; the CIP II Corporation thermal facility; the Ingrid3 Power Corporation which is the corporate vehicle of ACEN for diesel-fired power plant in Pililla, Rizal; and the One Subic Power Generation Corporation.
In the sealed deed of assignment disclosed to the Philippine Stock Exchange (PSE), it was stipulated that “ACEX will issue 339,076,058 shares of stock to parent firm ACEN at an issue price of P10 per share” – and that will be in exchange for the specified properties of ACEN.
For the Palawan55 oil and gas exploration venture, there were 3,064,900 shares at par value of P10 per share, representing 30.65-percent of the issued and outstanding shares of corporate vehicle Palawan55 Exploration and Production Corporation for the project.
The other ACEX shares issuances will be for 6,000,000 common shares in Bulacan Power Generation Corporation representing 100-percent of the company’s issued and outstanding shares; 6,351,000 common shares in CIP II Power Corporation with a par value of P50 per share and represents 100-percent of the issued and outstanding shares in CIPP.
Additionally, ACEX will be issuing 3,600,000 redeemable preferred shares with a par value of P1.00 per share, representing 100-percent of issued and outstanding shares of Ingrid3 Power Corporation; and then 33,493,366 common shares of its One Subic Power Generation Corp with a par value of P1.00 per share and that accounts for 17.13-percent of the firm’s issued and outstanding shares.
Of the assets covered in the ACEX shares issuance, it is the Palawan oil and gas exploration block as well as the diesel plant of Ingrid3 Power that are ongoing and relatively new ventures of the Ayala company; while the rest of the thermal assets are existing electric generating facilities.
For the Palawan oil and gas exploration venture, ACE Enexor previously batted that the project be granted with at least one-year force majeure status by the Department of Energy (DOE), for further work on the petroleum block had been temporarily deferred because of the Covid-19 pandemic.
For the Ingrid thermal power plant in Rizal, that facility is being aligned to help serve the peaking requirements of Luzon grid, especially when demand would hit record-high in the summer months.