The Power Sector Assets and Liabilities Management Corp. (PSALM) approved the request of Fort Pilar Energy, Inc. (FPEI) to assign its right to purchase the 650 megawatts Malaya thermal power plant and its underlying land in Rizal to its wholly owned subsidiary, Belgrove Power Corp.
FPEI was declared last month as the highest bidder for the asset with its P3.12 billion offer.
The re-assignment of the right to purchase was granted to FPEI’s wholly owned subsidiary as it is permitted under the terms of the privatization and not to an entirely new party.
“PSALM considered the request for assignment only after ascertaining the assignee’s juridical existence and financial capability through a rigorous evaluation process and upon obtaining FPEI’s acceptance of the additional conditions that it will become solidarily liable with Belgrove for any and all obligations of Belgrove as buyer under the asset purchase agreement,” said Irene Besido-Garcia, the state-run firm’s president and chief executive officer, in a statement.
She said the privatization of the asset is not yet completed as the parties are still filing all required documents with the Philippine Competition Commission for the issuance of a certificate of non-coverage indicating that the transaction is not needed for the agency’s review. – Jed Macapagal
