Connect with us

Hi, what are you looking for?


AC Energy to fully own Australia joint venture

AYALA-LED AC Energy Corp. is moving to fully acquire ownership of renewable energy (RE) platform UPCAC Renewables Australia, after announcing that its management has cleared the decision to buy the remaining stake of its joint venture partners in the foreign company.

In a press release on Tuesday, the listed power firm said its board of directors had given the green light for AC Energy’s subsidiary AC Renewables International Pte Ltd. to spend $243.3 million in buying the 52% interest held by its partner UPC Renewables Asia-Pacific Holdings and UPCAC Renewables Australia’s Chief Executive Officer Anton Rohner.

The two sellers will subsequently subscribe to up to 942 million common shares of AC Energy at a subscription price of P11.32 apiece.

The company said the acquisition is contingent on the fulfillment of conditions, and will depend on consent and regulatory approval, including that of the Foreign Investment Review Board of Australia.

“This transaction marks a strategic pivot for AC Energy, as the company embarks on its first wholly-owned development and operations platform outside of the Philippines,” said Eric T. Francia, AC Energy president and chief executive officer.

“We are excited to scale up investment in our Australia platform, as we expect the country to accelerate its energy transition,” he added.

Established in 2018, UPCAC Renewables Australia has developed more than 8,000 megawatts (MW) of an RE pipeline spanning New South Wales, Tasmania, Victoria, and South Australia.

It is currently developing a 520-MW solar farm in New England.

In a related development, AC Energy said that its board of directors had approved the company’s commitment to achieve net zero by 2050.

In another disclosure on Tuesday, the firm said its board also cleared the move to fully transition the company’s generation portfolio to RE by 2025, adding that it now has authority to work on an early retirement plan for South Luzon Thermal Energy Corp. (SLTEC).

AC Energy fully owns SLTEC, which runs a 270-MW coal-fired power plant in Calaca, Batangas.

The firm said it is looking at using an energy transition mechanism (ETM) for the plant’s early retirement. The ETM is a funding mechanism that has low cost and long-term financing geared towards early coal retirement, while allowing for the reinvestment of proceeds to enable RE projects.

“We remain committed to AC Energy group’s coal divestment policy. In the case of SLTEC, we will ensure that the divestment process incorporates the just transition approach,” Mr. Francia separately said on Viber.

AC Energy also has the go signal to fully acquire five companies, it said.

“The company will assign 100% of its equity in Palawan 55 Exploration and Production Corp., Bulacan Power Generation Corp., One Subic Power Generation Corp., CIP II Power Corp., and Ingrid 3 Power Corp., valued at P3.39 billion, in exchange for 339 million primary shares to be issued by ACEX (ACE Enexor, Inc.) to the company at a price of P10.00 per share,” the company said.

ACE Enexor is the Ayalas’ oil and gas exploration unit, which is majority-owned by AC Energy.

AC Energy hopes to “spin-off” all its thermal assets by 2025.

In addition, the firm is looking at acquiring the ownership interest of UPC Philippines Wind Co. BV and a certain “Stella Marie L. Sutton” in nine power companies for an aggregate amount of P4.5 billion.

AC Energy plans to issue up to 390 million common shares to the owners, affiliates and partners of UPC Philippines at P11.32 apiece.

AC Energy, the listed energy platform of the Ayala group, has an attributable capacity of around 2,600 MW across the Philippines, Vietnam, Indonesia, India and Australia.

The company aspires to reach 5,000 MW of RE capacity by 2025 as it hopes to become the region’s largest listed renewables platform.

AC Energy shares at the local bourse rose by 10% or P1.08 to finish at P11.88 apiece on Tuesday. — Angelica Y. Yang

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



GROSS BORROWINGS by the National Government had reached P2.75 trillion as of end-October as it continued to raise money for its pandemic response, preliminary...


By Luz Wendy T. Noble, Reporter THE PHILIPPINE Statistics Authority (PSA) said the base year for the consumer price index (CPI) will change to...


SOME INDIAN COMPANIES, including those from the pharmaceutical industry, are interested in investing in economic zones in the Philippines, according to an India Business...


By Keren Concepcion G. Valmonte, Reporter HOSPITALITY GROUPS expect a rebound in tourism as coronavirus disease 2019 (COVID-19) vaccination rates continue to improve and...


BUSINESSWORLD’s Luz Wendy T. Noble was recognized as the Best Reporter of the Year for Banking at the 30th annual awards of the Economic...


THE Securities and Exchange Commission (SEC) has flagged eight more entities in separate advisories for their unregistered investment solicitation programs. These offerings are PH...

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...


As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...


Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.