AC Energy, a unit of Ayala Corp. (PSE: AC), and Power Partners Ltd Co. signed a binding agreement for the transfer of AC Energy’s indirect ownership interest in the 4x135MW coal-fired power project in Kauswagan, Lanao del Norte (the GNPK Project) in favor of Power Partners. Power Partners is AC Energy’s existing developer-partner in the GNPK Project.
The transfer will be implemented in tranches, with the final transfer price to be agreed upon by the parties at a later date after taking into account agreed adjustments. The completion of the transfer is subject to satisfaction of certain conditions precedent, including approvals by the Philippine Competition Commission and the lenders of the GNPK Project.
The transfer of AC Energy’s interest in the GNPK Project is part of AC Energy’s plan to rebalance its generation portfolio as it aims to grow its renewable energy assets with a target of achieving at least 5GW of attributable renewable energy capacity by 2025.