Aboitiz Power Corporation has acquired an additional 35.4% equity stake in STEAG State Power Inc. (SPI) which operates a 210-MW Coal Fired Power Plant inside Phividec Industrial Estate in Misamis Oriental. AboitizPower will end up owning 69.4% equity interest in STEAG after completion of the acquisition.
In a disclosure at the Philippine Stock Exchange (LINK), AboitizPower stated that early this year, it received a transfer notice from STEAG GmbH (Germany) of its intention to sell its shares in SPI. AboitizPower then informed STEAG of its intention to exercise its right of first refusal (“ROFR”) to purchase the portion it is entitled to which is equivalent to 35.4% of the total issued and outstanding capital stock of SPI.
Accordingly, SPI’s power plant will be able to export much needed capacity to the Luzon grid, which has experienced tightness of supply reserves in recent years when the Mindanao-Visayas Interconnection Project comes to fruition sometime in October 2022.
The total Purchase Price for the Shares is US$36,081,554.90, plus locked box interest at a simple rate of 4% per annum (on the basis of a 365-day year) from 1 January 2021 to 31 March 2022.