Alsons, Toyota Tsusho deal awaits completion

MANILA, Philippines -  Listed holding firm Alsons Consolidated Resources Inc. (ACR) has yet to seal a power project partnership with Japan’s Toyota Tsusho Corp.

The 25-percent buy-in of Toyota Tsusho in power producer Sarangani Energy Corp. (SEC) was not finalized last month, an official said.

“Both parties are still ironing out final details of the documentation of the shareholders’ agreement,” ACR chief finance officer Luis R. Ymson Jr. said in a text message.

“At the same time, we are also waiting for the conclusion of some regulatory formalities,” Ymson added.

Early last month, ACR announced that its deal with Toyota Tsusho would be delayed to end-September from the earlier target of end-August.

Toyota Tsusho is buying into SEC, which plans to build a $290-million, 105-megawatt (MW) coal plant. SEC has a deal to sell 70 MW of electricity to South Cotabato II Electric Cooperative Inc.

SEC also has signed power supply agreements with Agusan Del Norte Electric Cooperative Inc., Agusan Del Sur Electric Cooperative Inc. and Davao del Norte Electric Cooperative Inc.

The first phase of the SEC power plant will start in early 2015, which will be followed by another 105-MW that will provide additional output in electricity-starved Mindanao.

Despite the delay in finalizing the partnership, Ymson said the company is still on schedule on the construction of the power plant.

The Mindanao grid, which needs an average of 1,300 MW daily, lacked an average of 50 MW to 300 MW, resulting in two to four hours of rotating brownouts from January to April.

The Alcantara Group controls and operates the 100-MW bunker-fired power plant of Western Mindanao Power Corp. in Zamboanga City and the 55-MW bunker fuel plant of Southern Philippines Power Corp. in Sarangani.

Aside from power generation, the group is also into real estate, aquaculture, agribusiness and services primarily focusing on Mindanao.

ACR reported a net income of P163.3 million in the first half from P289 million a year ago.

Despite this, ACR is confident that it will hit its full-year 2012 targets of P4.752 billion in revenue and P456 million in net income.