A Brown forms units for power business

A. Brown Inc., the investment arm of businessman Walter Brown, has created new units to handle its venture into the power business.

In a disclosure to the Philippine Stock Exchange, A. Brown said its newly-organized subsidiaries, Palm Thermal Consolidated Holdings Corp. (PTCH) and Panay Consolidated  Holdings Corp. (PCLH), will invest in DMCI Power Corp. (DPC).

Specifically, PTCH will acquire 100 percent of the outstanding capital stock of DMCI  Concepcion Power Corp. From DPC. PCLH, meanwhile, will acquire 30 hectares of land from DPC.

A. Brown, however, said they are still firming up the details of the agreements. “The agreements  to effect of the foregoing, however, will only be effective upon compliance by DPC with certain conditions precedent, including obtaining the requisite corporate and regulatory approvals, and after the conduct of satisfactory due diligence,” A. Brown said.

DPC president Nestor Dadivas, for his part, confirmed the sale of the Concepcion power facility  to A. Brown, although he declined to give details on the transaction particularly on how much  the deal will cost.

“That’s the Concepcion project that did not push through because we have no power supply  agreement with the electric cooperatives,” Dadivas told reporters. He, however, said A. Brown will still utilize coal from Semirara Mining, Corp., another DMCI Holdings subsidiary for the

Concepcion coal plant.

“The only project sold is the Concepcion project. No other changes. All other power projects are  intact,” Dadivas said.

A. Brown is primarily engaged in the business of real estate development located in Cagayan de  Oro City, Cainta, Rizal and Valencia City, Bukidnon and Butuan City.

Through its subsidiaries, it also ventured into oil palm nursery and seedlings distribution, palm  oil milling, operation of hotels and real estate brokerage.

At present, A. Brown has five categories for products and services. The first category covers real  estate activities, sale of crude palm oil, palm seedling and kernels and water services.