AEV transfers Aseagas stake to renewable energy unit

MANILA, Philippines - Aboitiz Equity Ventures Inc., the investment holding firm of the Aboitiz Group, is transferring its stake in its liquid bio-methane business to its renewable energy company holding unit to consolidate all its power businesses.

In a disclosure yesterday, AEV said its board approved the sale of all of its equity interests in Aseagas Corp. to Aboitiz Renewables Inc., a wholly owned subsidiary of Aboitiz Power Corp. which houses all renewable energy (RE) projects.

AboitizPower president and COO Antonio Moraza said the sale will consolidate all of the group’s power businesses under one roof.

“That’s exactly the reason, consolidation. And now we will grow it,” he said in a text message.

AEV said the sale is subject to the usual closing conditions and approvals.

“The acquisition price will be computed based on the subscription price of the shares, subject to the results of the fairness valuation being conducted by an independent financial adviser,” it said.

Aseagas, a wholly owned subsidiary of AEV, is the project company of the biomass renewable energy plant that utilizes organic wastes.

It partnered with UK-based Gazasia Ltd. to build a $50-million biogas plant in Lian, Batangas to produce liquid bio-methane fuel (LBM) from landfills or organic waste for vehicle use or similar use to liquefied natural gas (LNG).

Aboitiz Renewables, on the other hand, is the holding company of AboitizPower’s investments in renewable energy, such as run-of-river, geothermal and solar developments.