Aboitiz Renewables gets full ownership of Luzon Hydro

MANILA, Philippines - Aboitiz Renewables, a wholly-owned subsidiary of Aboitiz Power Corp., yesterday signed a memorandum of agreement with Pacific Hydro Bakun Inc. (PHBI) and Luzon Hydro Corp. giving the company full ownership of Luzon Hydro.

In a disclosure to the Philippine Stock Exchange (PSE), Aboitiz Renewables will assume full ownership and control of Luzon Hydro upon fulfilment of certain conditions in the MOA.

APC informed the PSE that the total transaction value is approximately $30 million.

PHBI, a wholly-subsidiary of Pacific Hydro Pty Ltd. of Australia is Aboitiz Renewable’s joint venture partner in Luzon Hydro.

Luzon Hydro owns and operates the 70-megawatt Bakun run-of-river hydropower plant in Ilocos Sur.

The Bakun hydro started commercial operations in 2001 under a build-operate-transfer scheme with the National Power Corp. (Napocor).

Aboitiz Power is the holding company for the Aboitiz Group’s investments in power generation, distribution, retail and power services.

It is a major producer of Cleanergy, its brand for clean and renewable energy in the Philippines with several hydroelectric and geothermal assets in its generation portfolio and also has non-renewable power plants located across the country.