AC Energy, Inc. is taking control of Phinma Energy Corp. in a strategic acquisition. Ayala extends thereby its geothermal holdings in Indonesia and acquires a stake in Phinma's geothermal holdings.
AC Energy, Inc. is taking control of Phinma Energy Corp. through a “mutually strategic agreement” that gives the Ayala-led company a 51.48% stake in the listed energy firm for P3.42 billion, as reported yesterday by Business World and other outlets in the Philippines.
With that move, Ayala’s energy platform AC Energy will acquired the combined stake of Phinma Corp. and its parent Philippine Investment Management, (Phinma) Inc. in Phinma Energy. The deal is though subject to regulatory approvals.
Jaime Augusto Zobel de Ayala, chairman and chief executive of Ayala Corp., says “they company aims now to integrate Phinma Energy into AC Energy’s platform as we grow our presence in the power generation sector.”
Parent firm Phinma will also sell its 25.23% interest in the energy subsidiary.
Eric T. Francia, AC Energy president and chief executive, said the transaction was an “important step” for the company in hitting its 5-gigawatt (GW) renewable energy installation target by 2025.
Ayala acquired the geothermal assets of Chevron in Indonesia in 2017 as part of a consortium of Star Energy Geothermal (Salak-Darajat) B.V., in which AC Energy has a 19.8% economic stake. AC Energy’s partners in the consortium are Star Energy Group Holdings Pte. Ltd., Star Energy Geothermal Pte. Ltd. and Electricity Generating Public Co. Ltd.
The Indonesia assets and operations include the Darajat and Salak geothermal fields in West Java, Indonesia, with a combined capacity of 637 MW [megawatts] of steam and power.
Phinma Energy has an attributable generation capacity of 472 MW. It is the third-largest stand-alone retail electricity supplier serving 378 MW of customer demand. The company holds a 25% stake in Maibarara Geothermal, which operates two geothermal units with a capacity of 32 MW in the Philippines. Another relevant geothermal holding is a 50.74% stake in Phinma Petroleum and Geothermal, Inc. (50.74%).