PetroEnergy sells 25% equity in RE unit to Japanese firm
The renewable energy investment arm of Yuchengco-led PetroEnergy Resources Corporation (PERC) sold 25 percent of its shareholdings to Japanese firm Kyuden International Corporation (KIC), a wholly owned subsidiary of Kyushu Electric Power Co. Inc.
In a statement to the media, the Yuchengco company said the shares divestment will come from PetroGreen Energy Corporation (PGEC), which handles the group's wind and solar farm installations as well as its geothermal facility development.
PERC emphasized that its board of directors already approved the signing of a share subscription and shareholders’ agreement with Kyuden.
The transaction prescribes the issuance of primary shares “in favor of KIC equal to 25-percent equity stake in PGEC upon completion of the conditions precedent.”
The parties have not revealed the value of the merger and acquisition (M&A) deal and the conditions precedent to transaction closing had not also been specified.
The Yuchengco company qualified that with the shares sell-down, “this will effectively reduce PERC’s interest in PGEC from 90 percent to 67.5 percent.”
Kyuden, in particular, has array of offshore power investments in Vietnam, Taiwan, Mexico and the United States; and its parent firm Kyushu Electric has been deploying technologies for thermal, geothermal, nuclear and hydropower facilities apart from its key role as the exclusive provider of electricity services to consumers in the Kyushu island.
On the part of PGEC, it is among the moderately-thriving RE power developers in the country with concretized projects on the solar, wind and geothermal investment realms.
The current power generation assets of PGEC cover those of the 32MW Maibarara geothermal project in Batangas; the 36MW Nabas-1 wind power facility in Aklan; and the 70MWdc solar power venture in Tarlac.
Just recently, the company announced that it has been advancing on the implementation of two more solar projects – primarily the 25-megawattdc Bugallon project in Pangasinan and the 27MWdc Dagohoy project in Bohol.
The Yuchengco group is similarly setting its sights on big-ticket offshore wind farm ventures that may build up its RE investment portfolio beyond 4,000MW if its blueprinted projects will turn into fruition.