Aboitiz Equity Ventures Inc. (AEV) said Japan’s JERA Co. Inc. has completed the acquisition of a 27-percent interest in Aboitiz Power Corp.
This follows after JERA remitted the $1.463 billion payment for the share, and the fulfillment of conditions like securing a confirmation of non-coverage from the Philippine Competition Commission and the ratification of the transaction during AEV’s special stockholders’ meeting this month.
JERA, Japan’s largest power generation company, acquired a the stake in AboitizPower, which included a AEV’s 25.01 percent and a 1.99 percent stake of the Aboitiz family’s privately- held parent company, Aboitiz & Company.
“AEV, which still owns a controlling stake of approximately 52 percent in AboitizPower, will use the cash proceeds from the sale to fund its long-term growth strategy, including expanding the non-power share in its business portfolio, increasing its overseas activity, and refinancing existing higher cost debt,” the company said.
Sabin Aboitiz, AEV president, said the JERA deal “leverages JERA’s experience and expertise for AboitizPower.”
“It expands our network outside the country and increases our optionalities,” he said.
