Ayala power unit divests stake in Iloilo plant

MANILA, Philippines - AC Energy Holdings Inc., the investment vehicle of conglomerate Ayala Corp. for the power sector, has sold its entire stake in a 135-megawatt coal-fired power plant in Iloilo, the company said in a disclosure to the Philippine Stock Exchange yesterday.

The firm said it sold its 40-percent stake in Palm Concepcion Corp., which operates the coal-fired plant and holding company Panay Consolidated Land Holdings Corp. to Palm Thermal Consolidated Holdings Corp. (PTCHC), a wholly-owned subsidiary of A. Brown Co.

Ayala Corp. managing director Eric Francia said AC Energy wants to focus on its other projects.

“The sale by AC Energy is a result of its strategic decision to focus on other power projects imminent in its development pipeline,” Francia said.

“In light of this development, PTCHC has taken the opportunity to acquire the entire stake of AC Energy,” A. Brown said in a separate disclosure yesterday.

Palm Concepcion is jointly owned by A. Brown, Jin Navitas Resource Inc. of the Rebisco Group and AC Energy.

The coal-fired power plant project, launched last Jan. 15, will use the circulating fluidized bed combustion (CFBC) technology and is one of the most advanced and most fuel-efficient plant in the Visayas.

Ayala Corp. said last month it is investing roughly $1 billion in power and infrastructure for the next five years. It has already committed $325 million out of the $1 billion in equity investments as it targets to assemble 1,000 MW of generation capacity from both renewable and conventional power assets.

In all, Ayala Corp. is setting aside between $600 million to $700 million for its equity investments in the power sector.

The company is in talks with existing power players for possible partnerships but officials declined to provide more details, saying nothing is final yet.

In 2012, Ayala Corp. began the construction of two 135-MW circulating fluidized bed (CFB) in Calaca, Batangas. In December last year, AC Energy also signed an agreement for a strategic stake in GNPower Mariveles Coal Plant, which owns a two 300-MW CFB coal plant.

In the renewable energy sector, AC Energy is also actively developing renewable energy platforms in wind and mini hydro-projects in various parts of Luzon and Mindanao.