Prime Infra, the infrastructure branch of the Philippin Enrique magnate K. Razon Jr., signed an agreement to acquire a 60% stake in first generation gas assets for $ 896.44 million (49.87 billion pesos).
The strategic decision should reshape the energy landscape to the Philippines.
The first generation, a company with close links with the influential of the Lopez family, was formed in December 1998 as a subsidiary of First Philippine Holdings Corporation (FPH).
The Lopez family, which also controls ABS-CBN, the largest diffuser in the country, will retain 40% of gas assets.
Acquisition is key development in the Philippin energy sector, following a natural gas joint venture of $ 3.3 billion (LNG) announced by San Miguel, Aboitiz Power and a subsidiary of Manila Electric Co.
The divestment of the first generation aims to support its ambition to quadruple its renewable energy capacity by 2030.
During the finalization of the agreement, Prime Infra will approach several key assets, notably the 1GW power plant of Santa Rita, the 500 MW power plant from San Lorenzo, the 450 MW San Gabriel power plant, the 97 MW power plant and the planned power plant of 1.2 GW Santa Maria.
The LNG Offshore intermediate terminal is also part of the transaction.
In exchange for the actions of the first generation, Prime Infra is committed to a payment of 50 billion pesos on the conclusion of the agreement, the potential adjustments and the modifications to be mutually agreed by the parties involved.
Prime Infra focuses on construction and operating assets that support the most urgent sustainability priorities, including reliable energy supply, access to drinking water and modern waste management.
“Prime infra to buy a 60% stock participation in Business de Gas de First Gen” was created and published by Offshore technologyA brand belonging to GlobalData.
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