Ayala Corporation’s (PSE: AC) subsidiary, AC Energy Holdings Inc. (AC Energy), announced on Tuesday that it has sold its shares of QuadRiver Energy Corporation, Philnew Hydro Power Corporation and PhilnewRiver Corporation (the “Hydro Companies”) to Sta. Clara Group, Inc. AC Energy president and CEO John Eric Francia said the company would like to focus on developing wind and solar energies.
Here are three fast facts on AC Energy selling all three hydro companies.
1. AC announced the sale through its company disclosure to the Philippine Stock Exchange (PSE).
The disclosure stated that AC held 70 percent of the stakes of the outstanding capital stock of each of the hydro companies while the remaining 30 percent were owned by Sta. Clara Power Corp prior to the sale.
2. The divestment will allow AC Energy to focus on other renewable energy developments such as solar and wind.
“AC Energy will first focus on solar and wind development, and could potentially revisit hydro in the future,” The Philippine Star reported Francia, as saying.
3. Francia said that AC Energy is still on-track with achieving its 2,000 MW (megawatts) by 2020 despite this divestment.
This should be achieved with AC Energy’s renewable energy projects in Bangui and Pagudpud in Ilocos Norte which are both into developing wind energy and the 18-MW solar plant in Negros Oriental.
In December, AC Energy ventured with Chevron Global Energy Inc., Union Oil Company of California through a signed share sale and purchase agreements of Chevron’s geothermal operations in Indonesia and the Philippines. AC Energy became part of the Indonesian consortium to develop a wind project with less than 100 MW in capacity.
“This acquisition is a major milestone for AC Energy as this scale up our renewable energy platform and establishes our presence in Indonesia,” The Malaya Business Insight reported Francia, as saying.
What do you think of AC Energy selling its stakes of three hydropower companies? Let us know in the comments section below.