Filinvest, International Power team up for PNOC-EDC bid

Filinvest Development Corp. (FDC) has teamed up with International Power Plc in bidding for the government’s 60 percent stake in state-owned geothermal power producer PNOC-Energy Development Corp.

This was disclosed by FDC, the listed holding firm of the Gotianun family, to securities regulators yesterday.

Listed at the London Stock Exchange, International Power is a leading independent electricity generating company with interests in over 30,000 megawatts (MW) of power generating capacity in 20 countries.

International Power has power plants in operation or under construction in Australia, the United States, the United Kingdom, the Czech Republic, France, Germany, Italy, the Netherlands, Portugal, Spain, Turkey, Bahrain, Oman, Qatar, Saudi Arabia, the UAE, Indonesia, Pakistan, Puerto Rico and Thailand.

It sells its electricity through supply contracts and merchant marketing and trading transactions. The company’s support activities for its core operations include coal mining, gas transportation, steam supply and water desalination.

FDC earlier said it is seeking to take advantage of the opportunities in the renewable energy sector in order to enhance shareholder value.

Aside from FDC and International Power, 12 other groups have earlier pre-qualified to bid for the Philippine National Oil Co.’s stake in PNOC-EDC. These include San Miguel Corp., Aboitiz Power Corp., First Gen Corp., Alsons Consolidated Resources, One Energy Ltd., Marubeni Corp., Sumitomo Corp., Basic Energy Corp., Ashmore Energy, Beleggingsmaatchappij Broem B.V., Geysir Green Energy Ltd., and Reykjavik Energy Invest.

Based on the criteria set by the government, a pre-qualified bidder must have a net asset value or market capitalization of at least $100 million or must have an affiliate with the same net asset value or market capitalization and has entered into a financial support arrangement with such affiliate.

The bidder must likewise be able to present a letter issued by a qualified investment-grade bank stating that the bank is highly confident that the bidder has the ability to fund an equity investment of not less than $100 million.

The government is eyeing to raise up to P36 billion from the sale, which is aimed at  bridging the country’s budget deficit.