MANILA, Philippines — The Philippine Competition Commission (PCC) has cleared the entry of AC Energy Philippines Inc. in another solar power plant in Negros Occidental.
PCC approved AC Energy’s acquisition of the stake of Philippine Investment Alliance for Infrastructure (PINAI) investors in Negros Island Solar Power Inc. (Islasol), which owns and operates an 80 megawatt solar farm in Negros Occidental.
The regulator said the deal would “not likely result in substantial lessening of competition.”
The PINAI investors will sell all of their shares of stock in Islasol to AC Energy, or its designated affiliate, for P1.1 billion under a share purchase agreement signed in November last year.
“Completion of the transaction is subject to approval by the Philippine Competition Commission, which was received by the company on Feb. 28,” AC Energy Philippines said.
With the completion of the transaction, the Ayala firm will be able to increase its cash flows from Islasol’s solar power farm.
“By acquiring a controlling interest in Islasol, the company will increase its ownership interest in a generating asset with stable cash flows at a reasonable cost,” AC Energy said.
The PCC also approved AC Energy’s acquisition in San Carlos Solar Energy Inc. (Sacasol), which owns and operates a 45-MW solar farm located in Negros Occidental, which is operating under the feed-in-tariff (FIT) regime of the Renewable Energy Act.
The acqusition of solar farms is part of the company’s plan to be a major player in the renewable energy business with the addition of the solar projects with combined capacity of 125 MW to its existing portfolio of renewable energy projects.
By 2025, AC Energy Philippines plans to put up a total of 2,000 MW of renewable capacity.