Through its subsidiary Therma Power (TPI), Philippine-based electric company AboitizPower intends to acquire indirect partnership interests in GNPower Mariveles Coal Plant (GMCP) and GNPower Dinginin (GNPD).
AbolitzPower plans to acquire the interest for a consideration of approximately $1.2bn. This deal will see TPI hold an indirect interest of 66.1% in GMCP and 40% in GNPD.
The transaction will be funded by a combination of internally generated cash and financing from foreign banks.
AboitizPower's CEO Erramon Aboitiz said: “The proposed acquisition of the indirect effective interests in GMCP and GNPD is in line with our target to increase our attributable net sellable capacity to 4,000 MW by 2020.
“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.
“We are likewise looking forward to the completion of our pipeline projects, which include more base-load capacity as well as renewables.”
Completion of the transaction is subject to the approval of the Philippine Competition Commission and the Board of Investments.
GNPD's first units are currently under construction and are expected to commence commercial operations by 2019. AboitizPower has invested in different thermal and renewable power generating facilities and maintains a balanced mix of energy sources to provide power at competitive rates.
Image: AboitizPower intends to acquire stakes in Bataan power plants. Photo: courtesy of Aboitiz Power Corporation.