Alternative Investment Report

AC Energy divests in three biomass projects

NEGROS ISLAND Biomass Holdings Inc. has forged binding agreements to divest its shareholdings in three biomass-fired power plants in the Visayas, its part owner Ayala-led AC Energy Corp. said on Friday.

In a stock exchange disclosure, AC Energy said Negros Island Biomass will sell its equity stake to Singapore-based ThomasLloyd CTI Asia Holdings Pte. Ltd., subject to certain conditions.

As a result, ThomasLloyd will have full control over the 20-megawatt (MW) San Carlos BioPower, 25-MW North Negros BioPower, and 25-MW South Negros BioPower.

Negros Island Biomass is a joint venture development holding company between AC Energy and the Zabaleta group. Terms of the sale were not specified in the disclosure.

ThomasLloyd already indirectly owns more than 90% economic equity ownership in the biomass-fired power plants.

“The acquisition by ThomasLloyd allows it to fully consolidate and further expand the biopower business, moving beyond just the power business and into complementary and ancillary businesses,” AC Energy said in the disclosure.

Meanwhile, AC Energy said the divestment of its indirect minority interest will allow it to concentrate efforts on expanding its core solar and wind businesses in an effort to reach 5 gigawatts of renewable capacity by 2025.

It added that the Zabaleta group is still invested in the solar and wind sectors and continues to operate Bronzeoak Clean Energy.

“Bronzeoak Clean Energy continues to provide management services to ThomasLloyd for the three plants, and continues as a bioenergy development and management company,” AC Energy said.

During the first quarter, AC Energy posted a 54% increase in its attributable net income to P829.32 million on the back of higher revenues from electricity sales.

On Friday, shares of AC Energy at the stock exchange rose 4.17% or 34 centavos to finish at P8.50 apiece. — Revin Mikhael D. Ochave

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