Metro Manila (CNN Philippines, December 18) — Philippine conglomerate San Miguel Corporation (SMC) is buying the 630-MW Masinloc coal-fired thermal power plant for $1.9 billion, or ₱95.8 billion.
The implied enterprise value of the company based on the transaction is at $2.4 billion (₱121 billion), a statement from SMC said.
The share purchase agreement deal was struck between SMC Global Power Holdings (SMCGPH) and Masin-AES Pte. Ltd equity holders AES Philippines Investment Pte. Ltd. and Gen Plus B.V.
SMCGPH is the holding company for San Miguel Corporation’s (SMC) investments in the power industry. It has a total capacity of 2,903 MW in at least six coal, natural gas, and hydroelectric power plants across the country.
The AES Corporation is a global power company providing energy to 16 countries, including the Philippines.
SMCGPH bought the equity stakes of both AES, at 51 percent, and the Electricity Generating Public Company (EGCO )Group, at 49 percent, in Masin-AES Pte.Ltd.
“We are happy to be able to acquire Masinloc. The additional power assets provide us an opportunity to increase our footprint in clean coal technology that provides reliable and affordable power, particularly in Luzon,” Ramon S. Ang, SMC President and COO said.
“In fact, we have substantially reduced emissions even from our existing power plants to continue promoting the economy’s growth and produce energy in an environmentally responsible way,” he added.
The sale includes the 335-MW coal-fired unit that is currently under construction and the 10-MW Masinloc energy storage project under commissioning, the SMC statement said.
The new unit is set to have boiler technology that is expected to result in higher efficiency and lower carbon dioxide emissions.
The completion of the agreement is still up for the approval of the Philippine Competition Commission (PCC). The PCC is tasked with promoting fair market competition, and preventing anti-competitive agreements and acquisitions.
