MANILA, Philippines — Aboitiz Power Corp. is entering the Vietnam energy market with the acquisition of a 39.4-megawatt (MW) wind power facility in Ninh Thuan province.
Though its wholly owned subsidiary AboitizPower International Pte. Ltd., AboitizPower signed a share purchase agreement to fully acquire Singapore-Inc. Mekong Wind Pte. Ltd. from Armstrong Southeast Asia Clean Energy Fund Pte. Ltd.
The deal covers all legal and economic interest in Mekong Wind, which in turn holds a 99.99 percent direct interest in Dam Nai Wind Power JSC.
Dam Nai Wind owns and operates the 39.4-MW onshore wind power facility in Ninh Thuan province, Southern Vietnam, which boasts some of the most attractive sites for wind energy in the country.
The deal amounts to around $46 million, which may be subject to certain closing adjustments. It is expected to be completed in the fourth quarter.
AboitizPower said the transaction builds on its investments in the rapid growth of renewable energy and marks its entry into one of Asia’s most attractive markets.
Vietnam, with its robust economic growth backed by strong government support, creates an attractive environment for AboitizPower to increase its commitment and contribution to energy supply security in Southeast Asia through its wide experience and expertise in the power sector.
“This transaction is a milestone for AboitizPower and sets the tone for our expansion in the international market. We have announced our intention to go international some time back and we have been prudent in looking for the right opportunity that will bring the best value for the company and our shareholders. This is such a transaction,” AboitizPower president and chief executive officer Erramon Aboitiz said.
The acquisition will also form part of its commitment to have a balanced portfolio mix by addressing the energy trilemma of adequate supply, cost of power, and protection of the environment.
“We are excited for this opportunity not only to expand beyond the Philippines, but to also bring our experience in the power generation sector, especially in the renewable energy space, to Vietnam. We are proud of what we have done with our Cleanergy brand in the Philippines and we will bring the same level of expertise and dedication to the Vietnam market,” AboitizPower chief operating officer Emmanuel Rubio said.
The acquisition is in line with AboitizPower’s goal to reach 4,000-MW net attributable capacity by 2020 through its balanced mix strategy.
Dam Nai Wind is one of the first wind power projects in Vietnam to have been successfully brought online with commercial operations having commenced in late 2017.
On the other hand, AboitizPower has investments in various thermal and renewable power generating facilities with a total net sellable capacity of 3,350 MW with its partners.
Its Cleanergy brand amounts to 1,272 MW, 39 percent of its total net sellable capacity generated from its portfolio of hydro, geothermal, and solar power plants.