KEPCO's acquisition of 38% stake in Solar Philippines firm gets approved

This will mark Kepco Philippines's first entry into the country's renewables sector.

The Philippines' Competition Commission (PCC) has approved Kepco Philippines Holdings, Inc.'s (KPHI) proposed acquisition of a 38% stake in Solar Philippines Calatagan Corporation (SPCC), a unit of Solar Philippines.

"The proposed acquisition of KPHI of shares in SPCC will not likely result in any substantial lessening of competition, for the reason that the parties, whilst both present in the market for power generation, appear not to compete either in the Wholesale Electric Spot Market or in the market for bilateral contracts, and thus do not compete within the same relevant market," PCC said in an announcement.

The acquisition will be the first entry of KPHI, KEPCO's fully-owned subsidiary, in the Philippines' renewables sector.

SPCC has been established to develop, finance, design, engineer, construct, complete, maintain, own and operate a 63.3MW solar power generating facility in Calatagan, Batangas with over 200,000 solar panels and 828 inverters.

In the acquisition, KPHI will subscribe to the unissued convertible preferred shares of SPCC and buy its convertible preferred shares from Solar Philippines.