Aboitiz Equity Venture Inc. is selling 25.02 percent of its stake in Aboitiz Power Corp. (AboitizPower) to Japan’s JERA Asia Pte. Ltd. for $1.46 billion.
The transaction covers 1.84 billion common shares of Aboitiz Power. Aboitiz has a 77 percent stake in AboitizPower pre-transaction.
“Upon completion of the transfer, Aboitiz will own approximately 52 percent of AboitizPower,” the company said.
The Aboitiz family’s privately held parent company has also agreed to sell an additional 1.99 percent stake in AboitizPower, bringing JERA’s total post-transaction stake to 27 percent.
JERA Asia is a wholly- owned subsidiary of JERA Co. Inc., a power generation company based in Japan. JERA’s Philippine affiliate, TPEC Holdings Corp., is a joint venture partner of AboitizPower’s holding company for its thermal power generation assets, Therma Power Inc., in Pagbilao Energy Corp.
Aboitiz said the transaction will allow AboitizPower “to benefit from the experience and expertise of Japan’s largest power generator, and release significant cash proceeds to Aboitiz Group that allows it to pursue the Aboitiz Group’s growth objectives.”
AboitizPower and JERA have identified potential areas for collaboration across multiple fronts including; joint development of liquefied natural gas (LNG)-to-power projects; the fuel sourcing and management of LNG; potential participation in aspects of plant operations and maintenance; and exploration of the use of new generation technologies.
