PetroEnergy consolidates renewable energy businesses

MANILA, Philippines — Yuchengco-led energy company PetroEnergy Resources Corp. (PERC) is buying out the stakes of EEI Power Corp. in three renewable energy firms for P2.69 billion.

In a disclosure to the Philippine Stock Exchange, PERC said it has signed a share purchase agreement with EEI Power to acquire the latter’s common shares in PetroGreen Energy Corp. (PGEC), PetroSolar Corp. and PetroWind Energy Inc.

“The move supports PERC’s plans to focus more on renewable energy and to increase its stake in existing and planned projects, taking advantage of the emerging opportunities in the industry,” PERC said.

A total of 213.68 million shares equivalent to 7.5 percent interest in PGEC will be acquired by PERC from EEI Power at P2.78 apiece for   P594 million.

PGEC is a joint venture corporation established among PERC, EEI Power and Kyuden International Corp.

PERC will also purchase 44-percent interest or 6.99 million shares at P206.46 apiece for a total of P1.44 billion in PetroSolar, a joint venture corporation established between PGEC and EEI Power.

In addition, PERC will acquire 20-percent interest or 2.87 million shares at P227.38 apiece in PetroWind for   P651.54 million.

PetroWind is a joint venture corporation established among PGEC, BCPG Wind Cooperatief U.A. and EEI Power.

After fulfillment of all the conditions for the sale, EEI Power will no longer have any interest in PGEC, PetroSolar and PetroWind.

PERC, through PGEC, currently has 138 megawatts (MW) of renewable energy operating capacity.

The company recently secured P1.8-billion financing and major approvals for the expansion of its onshore wind project in Aklan.

PERC is engaged in petroleum production through the Etame consortium in Gabon, West Africa and in renewable energy in the Philippines through PGEC, which owns and runs power stations utilizing geothermal, wind, and solar energy.

As an investor and developer of renewable energy projects in the country, PGEC has significant stakes in the 32-MW Maibarara geothermal facility in Batangas operated by Maibarara Geothermal Inc., the 36-MW Nabas-1 wind power project by PetroWind, and the 70-MWdc Tarlac solar power facility by PetroSolar.

It also acquired three new offshore wind blocks from the Department of Energy covering offshore northern Luzon, northern Mindoro, and eastern Panay.

House of Investments is the single largest majority shareholder of PERC, which is also the majority shareholder of EEI Corp., the parent of EEI Power.

EEI, for its part, said the funds to be received from the transactions would be used to reduce the company’s debt obligations and provide working capital as it gears up for additional construction business in the Philippines and abroad.