ACEN, ENEX cancel property-for-share swap agreement

The companies cited challenging economic conditions for the cancellation.

ACEN and ACE Enexor (ENEX) have cancelled the property-for-share swap agreement due to unfavorable market conditions. 

The company’s had approved in 18 October the share swap agreement, involving the transfer of the ACEN’s direct interest in Palawan 55 Exploration & Production Corporation to ENEX. 

The transfer also covers ACEN’s ownership interesting Bulacan Power Generation Corporation, CIP II Power Corporation and One Subic Power Generation Corporation, and its interest in Ingrid3 Power Corp. 

“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 and ENEX said in a statement.

“During the past few months, the management teams of ACEN and ENEX have exerted diligent and good faith efforts in planning and mapping out the implementation of the various steps needed to comply with the foregoing requirements.”

Current economic conditions, stemming from the continuing impact of the pandemic and the conflict between Ukraine Russia, however, made it more challenging to accomplish the necessary steps.

Despite, ACEN noted that it will continue pursuing other means to transition the diesel assets and its direct ownership interest in Palawan 55, amongst other opportunities in energy transition.