Aboitiz unit gets SEC okay to hike capital

MANILA, Philippines - SN Aboitiz Power-Benguet Inc. has obtained the Securities and Exchange Commission’s nod to raise its capitalization from P1.05 billion to P1.61 billion.

SN Aboitiz Power-Benguet, a subsidiary of Aboitiz Power Corp., is in charge of the rehabilitation of the Ambuklao hydroelectric power plant located in Bokod, Benguet province.

Of its new authorized capital stock, P1.01 billion has been subscribed and paid for.

SN Aboitiz Power-Benguet won the bidding for the Ambuklao-Binga complex - the country’s pioneering hydroelectric power plants, in November 2007 with an offer of $325 million.

The rehabilitation of the Ambuklao plant formally started December 2008.

Considered a major project, the rehabilitation of the Ambuklao plant will make use of existing areas and facilities turned over by National Power Corp. (Napocor) to SN Aboitiz Power.

SN Aboitiz Power Inc. is a consortium composed of SN Power of Norway (through its holding company in Singapore) and Aboitiz Power Corp., a subsidiary of Aboitiz Equity Ventures (AEV). SN Aboitiz is a majority Filipino-owned power-generation company.

The Aboitiz Group owns or controls around 18 generation facilities nationwide. Its market share in Luzon grew significantly due to the acquisition of privatized Napocor plants. Its power generation portfolio includes Philippine Hydropower Corp. (mini and small hydro plants), Luzon Hydro Corp. and HEDCOR (70-MW Bakun hydro), 113-MW Western Mindanao Power Corp., 59-MW Southern Philippine Power Corp., 232-MW Steag, 360-MW Magat (SNAP), 175-MW Ambuklao-Binga (SNAP Benguet), Therma Power-Visayas, Therma Luzon Inc. and AP Renewables Inc. (APRI).

Aboitiz Power is the power generation and distribution arm of conglomerate Aboitiz Equity Ventures Inc. owned and controlled by the Cebu-based Aboitiz family.

Aside from power distribution and generation, AEV is engaged in the financial services, food manufacturing and transport businesses.