AboitizPower cleared to acquire stakes in GNPower thermal power plants

ABOITIZ Power Corporation (AboitizPower), through its wholly owned subsidiary Therma Power, Inc. (TPI), recently secured approval from government to acquire indirect partnership interests in the GNPower Mariveles Coal Plant Ltd. Co. (GMCP) and the GNPower Dinginin Ltd. Co. (GNPD).

TPI's acquisition bid was approved by the Board of Investments and the Philippine Competition Commission last Nov. 21 and Dec. 19, respectively.

Under this cleared bid, TPI will now hold indirect effective interests held by affiliated investment funds of The Blackstone Group L.P in World Power Holdings, L.P. and Sithe Global Power, L.P. As a result, TPI now holds a 66.1 percent beneficial ownership interest in GMCP and 40 percent beneficial ownership interest in GNPD. The proposed acquisition consideration is priced approximately at $1.2 billion and will be funded by a combination of internally generated cash and financing from foreign banks.

GMCP is a 604-MW subcritical thermal power plant, which started operations in 2014, while GNPD is a new project consisting of 2x668-MW supercritical thermal power plant, located in Bataan. The first of the GNPD units is currently under construction and is targeting commercial operations in 2019.

“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,” said Antonio Moraza, AboitizPower president and chief operating officer.

“We consider this acquisition very strategic as it gives us immediate earnings from the operating asset and incremental capacity in the coming years from the plant under construction and its expansion,” Moraza said.

At present, AboitizPower has investments in various thermal and re- newable power generating facilities and maintains a balanced mix of energy sources to provide ample and reliable power at competitive rates.

In its efforts to ensure stable and adequate power supply in the Visayas, AboitizPower subsidiary Therma Visayas, Inc. is building a 340MW thermal power plant in Toledo City, which is expected to enter testing and commissioning stages next year.