ABOITIZ Power Corp. is taking full ownership of La Filipina Electrika Inc. (LEFI) that the listed company intends to use as a vehicle to pursue renewable energy (RE) projects in the future.
AboitizPower, through unit Aboitiz Renewables Inc. (ARI), is acquiring 100 percent of LEFI from Therma Power, Inc. (40 percent) and La Filipina Uy Gongco Corp. (60 percent).
“This transaction will allow ARI and AboitizPower to use LFEI as a vehicle for future renewable energy projects,” said the listed firm in a disclosure on Monday.
Formerly Therma Southern Mindanao Inc., LEFI is a Philippine-incorporated company owned by TPI and La Filipina. The entity was intended to be used for a joint venture power project.
However, TPI and La Filipinas sold their respective stakes in LEFI to ARI because both companies decided not to pursue its potential project.
TPI is an affiliate of ARI, which holds all the renewable investments of AboitizPower. Both entities are wholly-owned subsidiaries of AboitizPower.
On the other hand, La Filipina is not related to AboitizPower, its directors/officers or any of its affiliates.
The deal entails 192,500 shares to be acquired, valued at P1 each or a total of P192,500, to be settled at a one-time lump sum payment at closing.
AboitizPower is the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services.
The company also owns distribution utilities that operate in high-growth areas in Luzon, the Visayas, and Mindanao, including the second and third largest private utilities in the country.
AboitizPower aims to source 65 percent of new capacities from renewables, resulting in an almost 50:50 RE and thermal capacity mix by 2030.
AboitizPower shares fell by 10 centavos or 0.37 percent to close at P26.90 each on Monday.
Article and Photo originally posted by Manila Times last January 12, 2021 and written by Jordeene B. Lagare. Minor edits have been made by REBPH to cater to its own readers.