Manila, Philippines - Listed renewable energy firm Greenergy Holdings Inc. has completed its sale of P25 million worth of shares to a foreign private equity fund.
“Greenergy and Southern Field Ltd. have executed (yesterday) the subscription agreement pertaining to the latter’s subscription to 2.5 billion common shares of the corporation at par value of P0.01 per share,” the energy firm said in a disclosure.
Last month, the board of directors of Greenergy approved the sale of shares to Southern Field.
Greenergy president and chief executive Antonio L. Tiu earlier said that proceeds of the fundraising will bankroll Greenergy’s investment in a local biofuel firm.
Greenergy is finalizing its entry into Isabela Alcogas Corp., which has an ethanol project in Misamis Occidental. Greenergy will buy P25 million worth of shares in Alcogas, with an option to increase it to P50 million.
Alcogas engages in the manufacturing and trading of goods like ethanol and other biofuels.
Sister firm AgriNurture Inc. already bought P25 million worth of Greenergy shares early last month. Southern Field is a shareholder in AgriNurture.
Greenergy is in a joint venture with China-based Tianjin Tianbao for the construction of $1.3 billion worth of wind power projects with a total generating capacity of 1,000 megawatts (MW) in the Philippines in the next 10 years.
Initial investment will cost $200 million for a 49.5-MW wind energy project composed of 33 units of 1.5-MW wind mills. Tiu said the funds will be spent in the next six to eight quarters.
The company was incorporated as Music Semiconductors Corp. in 1992 to engage in the creation, design, development and manufacture of specialty semiconductor products and to market and sell the same to customers worldwide.