Ayala-led ACEN Corporation will be increasing its stake by more than 13 percent in subsidiary ACE Enexor Inc. (ACEX) with the transfer of at least five assets of the former that had been valued at P3.39 billion.
In the deed of assignment inked by the parties, ACEN effectively transferred its rights and interests to ACE Enexor for the following assets: the Palawan55 Exploration & Production Corporation, Bulacan Power Generation Corporation, CIP II Power Corporation, Ingrid3 Power Corp. and One Subic Power Generation Corporation.
As could be gleaned from the documents submitted to the Philippine Stock Exchange (PSE), the asset-transfer will then raise ACEN’s ownership stake in its subsidiary-company to 89.78-percent from currently at 75.92-percent.
“Upon completion of the transaction, ACEN will own 89.78-percent of the outstanding capital stock of ACEX,” the Ayala energy firm said, adding that ACE Enexor, in turn, “will acquire from ACEN the ownership interest” in the specified properties.
The asset acquisition by the subsidiary firm had been valued at P10 per exchange share, hence, the total transfer value of the assets would be P3.390 billion.
The deed of assignment was signed by the two companies on December 29 last year, but they recently integrated amendments into the deal -- primarily to reflect ACEN’s shareholdings hike in ACE Enexor.
The asset-transfer to the subsidiary is regarded as ACEN’s strategic step on to reinforcing its focused portfolio buildup for renewable energy (RE) projects; while ACE Enexor will be the corporate vehicle housing its oil and gas facilities and investments.
In particular, ACE Enexor will serve as the entity that will be pursuing oil and gas exploration venture at its Palawan petroleum block, although its targeted drilling activities had been deferred due to the devastating impact of the coronavirus pandemic.
The subsidiary-firm will also be assuming ownership and operation of the 150-megawatt Ingrid diesel power project that the Ayala group had jointly developed with Axia Power Holdings Corporation, a subsidiary of Japanese firm Marubeni Corporation.
The diesel facility, which already kicked off its commercial operations around June last year, will help satiate Luzon grid’s need for peaking capacity, especially during the summer months when electricity demand surge is anticipated.