Alsons buys out Thai partner in Conal Holdings

MANILA, Philippines - EGCO International Ltd, a wholly-owned subsidiary of Thailand’s Electricity Generating Public Co. Ltd., has divested its 40 percent stake in Conal Holdings Corp., its joint venture with Alsons Consolidated Resources Inc. (ACR) of the Alcantara Group.

In a disclosure to the Philippine Stock Exchange Alsons is acquiring EGCO’s 40 percent stake, bringing its ownership in the power holding company to 100 percent.

“ACR will own 100 percent of the power holding company, thereby increasing the net income attributable to the parent in ACR’s earnings,” Alsons said.

Conal currently has investments in Western Mindanao Power Corp.’s 100-megawatt diesel plant in Zamboanga City, Southern Philippines Power Corp’s 55-MW diesel plant in Sarangani province and Alto Power Management Corp., a management company.

Upon completion of the deal, ACR will acquire full control of Conal, allowing it to concentrate all its power-related interests in the holding company.

“The deal also enables ACR to consolidate its ownership and control of Mapalad Power Corp’s 98-MW Iligan diesel power plant – a recent addition to ACR’s power portfolio,” ACR said.

With the agreement, ACR will also continue to pursue the development of new projects in Mindanao and other areas.

ACR is currently focused on building new power facilities such as Sarangani Energy Corp.’s 201 MW coal-fired power plant undergoing construction in Maasim, Sarangani and the prospective San Ramon Power Inc. 105-MW coal-fired power plant in Zamboanga City.

EGCO, for its part, has chosen to invest in established power projects. It currently owns 98 percent of Quezon Power in Mauban, Quezon province, which operates a 460-mw coal-fired power plant.

The Quezon Power project, which commenced operations in May 2000, supplies electricity to the Luzon grid under a 25-year power sales agreement with Manila Electric Co. (Meralco).

EGCO, an independent power producer, has total installed capacity of 4,444 MW in Thailand.