ABOITIZ Renewables, Inc. (ARI) has gained full ownership of La Filipina Electrika, Inc. (LFEI), which is targeted to be the vehicle for upcoming renewable energy projects of the company as well as parent firm AboitizPower Corp.
Before the acquisition, LFEI was owned by La Filipina Uy Gongco Corp., which held 60%, and Therma Power, Inc. (TPI) at 40%.
“(LFEI) was intended to be used for a joint venture power project. Because TPI and La Filipina have decided not to pursue this potential project, TPI and LFUGC (La Filipina) intend to sell LFEI to ARI,” AboitizPower said in a regulatory filing on Monday.
ARI purchased LFEI for P192,500 at a par value of P1 per share on Jan. 8. The amount was paid in a one-time lump sum payment at closing. The undertaking was said to have followed “customary closing conditions.”
“This transaction will allow ARI and AboitizPower to use LFEI as a vehicle for future renewable energy projects,” AboitizPower said.
ARI and TPI are both wholly owned units of AboitizPower. ARI is AboitizPower’s renewable energy company holding unit. La Filipina is not related to the Aboitiz-led group or any of its affiliates.
Last month, AboitizPower announced that it was looking to raise P30 billion by issuing denominated fixed-rate retail bonds in tranches depending on market conditions.
It said that its board of directors had approved the first tranche of retail bonds worth P4 billion, which was scheduled to be rolled out in the first quarter.
Shares in AboitizPower inched down 0.37% to close at P26.90 apiece on Monday. — Angelica Y. Yang