Aboitiz Power Corp. (PSE: AP) has been approved to acquire indirect partnership interests in GNPower Mariveles Coal Plant Ltd. Co. (GMCP) and GNPower Dinginin Ltd. Co. (GNPD) through its subsidiary Therma Power, Inc. (TPI). Read on to learn more about it.
3 Fast Facts About AboitizPower Acquisition Of Interests In GNPower Thermal Power Plants:
1. The approximate acquisition price of interests in the two power plants is $1.2 billion (P59.78 billion).
“We welcome the government’s latest move to clear our planned acquisition of stakes in the GNPower thermal power plants, as we consider this an essential strategy in our commitment to securing a balanced energy mix to support the country’s energy security. This is also in line with our target to increase our attributable net sellable capacity to 4,000 MW by 2020," AboitizPower President and Chief Operating Officer (COO) Antonio Moraza said in the company's news release.
Moraza explained that the acquisition is very strategic as it gives the company immediate earnings from the operating asset and incremental capacity in the coming years starting from the plant under construction and expansion. The Board of Investments (BOI) and the Philippine Competition Commission (PCC) approved the acquisition bid for GMCP and GNPD on Nov. 21 and Dec. 19.
2. TPI will hold 66.1 percent and 40 percent beneficial ownership interest in GMCP and GNPD, respectively.
TPI will hold indirect effective interests to be held by affiliated investment funds of The Blackstone Group L.P in World Power Holdings, L.P. and Sithe Global Power, L.P. The acquisition will be funded by a combination of internally generated cash and financing from foreign banks.
3. GMCP's operations started in 2014 while GNDP targets to operate in 2019.
GMCP is a 604-MW subcritical thermal power plant. On the other hand, GNPD is a new project consisting of 2 x 668-MW supercritical thermal power plant. The first of the GNPD units is under construction. Both plants are located in Bataan.
AboitizPower is the holding company for the Aboitiz Group’s investments in power generation, distribution and retail electricity services.
What do you think of AboitizPower acquisition of interests in the two GNPower thermal power plants? Let us know in the comments section below.