MANILA, Philippines - Aboitiz Equity Ventures Inc. (AEV) has beefed up its stake in subsidiary Aboitiz Power Corp. with the purchase of an additional 31.65 million shares valued at P933.67 million.
In a disclosure to the stock exchange yesterday, AEV said it bought shares of Aboitiz Power at P29.50 each.
Aboitiz Power is the holding company for the Aboitiz Group’s investments in power generation, distribution, retail and power services.
It has several hydroelectric and geothermal assets in its generation portfolio and also has non-renewable power plants located across the country. The company also owns distribution utilities that operate in high-growth areas in Luzon, Visayas and Mindanao.
Aboitiz Power’s generation business is carried out by Aboitiz Renewables Inc., AP Renewables Inc., SN Aboitiz Power-Magat Inc., SN Aboitiz-Benguet Inc., Hedcor Inc., and Luzon Hydro Corp. The distribution function is taken care of by Visayan Electric Co. Inc. and Davao Light & Power Co. Inc.
AEV, on the other hand, is a diversified conglomerate with interests in power generation and distribution, financial services and food manufacturing.
In the nine months ending September 2011, Aboitiz Power posted a net income of P16.2 billion, 12 percent lower than the P18.5 billion recorded the previous year, due to a P721- million one-time gain in 2010.
Aboitiz Power expects its brownfield and greenfield projects in Davao,Subic and Pagbilao to further boost its capacity over the medium term. Without any further acquisitions, it expects its attributable capacity increasing by 700 megawatts or about 30 percent over the next few years.