THE Philippine Competition Commission (PCC) has cleared A Brown Co. Inc. unit ABC Energy Inc.'s plan to buy a 40-percent stake in two wind units of Alternergy Holdings Corp.
In separate disclosures on Tuesday, both Alternergy and A Brown said the competition watchdog had cleared the plan to buy into Alternergy Tanay Wind Corp. and Alabat Wind Power Corp.
“The parties continue to advance the construction of both wind projects toward successful completion and commercial operation,” A Brown said.
The two Alternergy units plan to jointly develop the 128-megawatt (MW) Tanay and 64-MW Alabat wind power projects.
Alternergy last October said that it had sealed a P2.4 billion co-investment for the Tanay and Alabat wind projects from ABC Energy through the stake purchase.
On Tuesday, Alternergy said the acquisition would be done via a combination of primary and secondary share issuances.
The secondary shares will be sold by Alternergy Wind Holdings Corp., which will retain a majority 60-percent ownership in both wind companies.
"The PCC clearance affirms the partnership between Alternergy and ABC Energy as aboveboard, transparent and free of any unfair market manipulation or practices,” Alternergy President Gerry Magbanua said.
ABC Energy President Paul Juat, meanwhile, said: “This is our single largest investment to date and we are looking forward to this partnership as we accelerate ABC Group’s own green energy initiatives.”
Alternergy shares on Tuesday were unchanged at P0.75 apiece while those of A Brown rose by four centavos, or 4.49 percent, to close at P0.93 each.
