ACEN to issue 942 million shares to UPC Renewables

AC Energy Corp. (ACEN) has received stockholder approval for the issuance of up to 942 million common shares to UPC Renewables Asia Pacific Holdings Pte Ltd. (UPCAPH) and UPCAC Renewables Australia CEO in line with its takeover of their Australian joint venture.

In a special meeting yesterday, stockholders representing at least two-thirds of the company’s authorized capital approved the issuance of the common shares to the owners, affiliates, and/or partners of UPCAPH and UPCAC Renewables Australia CEO Anton Rohner as well the listing of these shares.

The shares will have a subscription price of P11.32 per share, subject to adjustment or a total subscription price of P10.7 billion.

Of the shares to be subscribed, 800 million will go to UPCAPH and 61.6 million to Rohner.

In October, ACEN’s board of directors approved the acquisition of UPCAPH and Rohner’s 51.6 percent stake in the UPCAC Renewables Australia joint venture for $243. million. This will raise ACEN’s ownership in the renewables development platform to 100 percent.

ACEN president Eric Francia said the transaction marks a strategic pivot for ACEN as the company embarks on its first wholly owned development and operations outside of the Philippines

“We are excited to scale up investment in our Australia platform as we expect the country to accelerate its energy transition,” he said.

Meanwhile, ACEN stockholders approved the issuance of up to 390 million common shares to the owners of UPC Philippines Wind Investment Co. BV at P11.32 per share or a total of P4.4 billion.

Stockholders also approved the amendment of the company’s articles of incorporation to change its corporate name from AC Energy Corp. to ACEN Corp.

Also approved was the amendment to the articles of corporation to remove oil exploration, mining and related businesses from the primary purpose and secondary purposes and to include retail electricity supply and provision of guarantees as primary purpose. This is in line with the company’s goal to achieve net zero emissions by 2050.

In October, ACEN announced its commitment to net zero greenhouse gas emissions to limit global warming by 1.5 degrees by 2050.

As part of its net zero journey, ACEN’s board also approved the transition of the company’s generation portfolio to 100 percent renewable energy by 2025.

To ensure this transition, ACEN will spin off all its thermal assets by 2025. It secured board approval to enter into a property-for-share swap with ACE Enexor Inc. (ACEX), the listed oil and gas exploration and production unit of the Ayala Group.

ACEN is the listed energy platform of the Ayala Group. It has over 3,000 MW of attributable capacity in the Philippines, Vietnam, Indonesia, India and Australia.

The company aims to be the largest listed renewables platform in Southeast Asia, with a goal of reaching 5,000 MW of renewables capacity by 2025.