ABOITIZ Power Corp. (AboitizPower) on Tuesday said that it had entered into a joint agreement with A Brown Co. Inc. for the development of an integrated solar project in Manolo Fortich, Bukidnon.
The transaction involves AboitizPower business unit, Aboitiz Renewables Inc., acquiring 60 percent of Manolo Fortich Power Corp., a business unit of A Brown Co. subsidiary, ABC Energy Inc., to construct the latter's 191 megawatt-alternating current (MWac) solar power generation facility with battery energy storage system (BESS) and interconnection facilities.
AboitizPower said payment would be made in two phases starting with P3.75 million for the subscription to 3,750,000 common shares from the current, unissued authorized capital stock of Manolo Fortich Power.
The second payment of P746.25 million will be for the subscription to 74,625,000 redeemable preferred shares with a price of P10.00 each once the authorized capital stock of Manolo Fortich Power is increased and approved by the Securities and Exchange Commission.
A Brown said that ABC Energy Inc. would keep the remaining 40 percent of Manolo Fortich Power.
The company added that subscription proceeds would be paid to Manolo Fortich Power to fund the project, and neither it nor ABC Energy will receive cash proceeds from the transaction.
The transaction was said to be in line with ABC Energy's strategy of developing greenfield energy projects.
Both firms said the execution of definitive subscription agreements and issuance of shares to Aboitiz Renewables would depend on the completion of customary conditions precedent, including satisfactory completion by the latter of its due diligence review on the project.
On Tuesday, AboitizPower's share price fell by 50 centavos to P43.80 each while that of A Brown rose by 5 centavos to P0.85 apiece.
