Ayala-led firms ACEN and ACE Enexor Inc. have approved the cancellation of the property-for-share swap between the parties.
In a disclosure to the Philippine Stock Exchange, the companies explained “the process became challenging with the economic uncertainties due to the continuing pandemic and the Ukraine-Russia conflict.”
In October, the parties approved a share swap last which would have involved the transfer to Enexor by ACEN of its direct interest in Palawan 55 Exploration & Production Corp., which in turn has an ownership interest in Service Contract (SC) 55; its ownership interests in various diesel assets and its interest in Ingrid3 Power Corp., which is a development special purpose vehicle for a potential gas power generation project, in exchange for Enexor issuing 339,076,058 primary shares to ACEN.
The transaction would have required a follow-on offering and stock rights offering following relevant market rules, which will be challenging to execute under current economic conditions.
ACEN said it will continue to explore other means to transition diesel assets and its direct ownership interest in Palawan 55 as it remains committed to attain 100-percent renewable energy generation by 2025.
Enexor said it will continue to explore relevant opportunities in energy transition space, including the opportunities under SC 55 as management continues to look for the right partner for the gas resource prospect in Palawan. – Jed Macapagal
