AEV to sell 25% AboitizPower stake to Japan firm – BusinessWorld

Deal with JERA for nearly $1.5B seen to boost energy projects, including LNG

ABOITIZ Equity Ventures, Inc. (AEV) is planning to sell a 25.01% stake in subsidiary Aboitiz Power Corp. to Japan-based JERA Co., Inc. for around $1.463 billion to help fund the listed holding firm’s growth plans and boost its energy arm’s initiatives.

“This transaction unlocks significant capital that will be used toward fueling the AEV Group’s growth initiatives,” AEV President and Chief Executive Officer Sabin M. Aboitiz said in a statement on Monday.

The planned sale covers 1,840,334,941 common shares in AboitizPower. AEV will still own 52% of the unit once the transaction is completed.

The transaction is subject to “necessary customary approvals,” including stockholders’ approval. A special stockholders meeting is set for Dec. 9.

Meanwhile, the Aboitiz family’s privately held parent firm will also sell to JERA an additional 1.99% stake in AboitizPower, which will bump up JERA’s stake in the listed power firm to 27%.

JERA, said to be Japan’s largest power generation company, will also be working with AboitizPower for its clean energy projects.

“We look forward to the new strategic partnership with JERA as we welcome their trust, expertise, and commitment to help the AEV Group drive change for a better world by accelerating Philippine economic growth and promoting the development of clean energy,” said Mr. Aboitiz.

The partnership includes the joint development of liquefied natural gas (LNG) for power projects as well as their fuel sourcing and management.

JERA and AboitizPower will also collaborate on the potential participation in the plant’s operations and management and in the “exploration of the use of new generation technologies.”

“We look forward to working collaboratively with JERA to achieve our 10-year vision of increasing our generation portfolio to 9,200 megawatts (MW), by adding 3,700 MW of RE (renewable energy) capacity resulting to a 50:50 balance between our Cleanergy and thermal portfolios,” said AboitizPower President and Chief Executive Officer Emmanuel V. Rubio.

Shares of AEV at the stock market went up by 2.12% or P1.10 on Monday, closing at P53.10 apiece. Meanwhile, AboitizPower shares rose 4.75% or P1.55 to finish at P34.20 each. — Keren Concepcion G. Valmonte

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Education News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TechiLive.in is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.