By Myrna M. Velasco

Through disclosures at the Philippine Stock Exchange (PSE), Aboitiz Power Corporation and AC Energy, Inc. of the Ayala group separately confirmed the “ongoing negotiations” on the former’s interest to purchase the 50-percent equity of the latter conglomerate’s thermal assets.

Aboitiz Power’s Corporate Secretary Manuel R. Colayco stated in the market disclosure that their company “is in discussions with AC Energy Inc. and we will file the necessary disclosures if and when disclosure is warranted.”

From Ayala’s camp, it reaffirmed talks on the anticipated deal, while also qualifying that “we will provide updates in due course.”

The value of the transaction has been initially pegged at US$1.0 billion – the tag price for the 50-percent equity of the thermal portfolio of the Ayala conglomerate that it has auctioned for sell-down.

The coal-fired plants of the Ayala group are those sited in Mariveles, Bataan (Luzon grid); and Kauswagan in Lanao del Norte in Mindanao grid – essentially pushed into commercial development phases via corporate vehicle GNPower.

The initial project development in Mariveles was for the first phase of 690 megawatts – comprising of two blocks at 345MW capacity each. That facility in Dinginin site is now expanded by additional 1,336MW or 668MWcapacity each for two blocks.

In the southern part of the country, the group’s coal-fired power investment is the four-unit Kauswagan power station that will yield 552 megawatts at its scheduled commercial operations this year.

With this forthcoming deal, Aboitiz will further reinforce its foothold in the GNPower thermal assets – from its US$1.2-billion investment entry in 2016 when it acquired the shareholdings previously held by foreign partners – The Blackstone Group L.P.; and Sithe Global Power L.P.

The Ayala group has been constantly indicating plans of rebalancing investments – with more focus on renewable energy (RE) ventures and targets at the offshore markets of Australia, Indonesia and Vietnam.