Philippines' competition watchdog OKs AC Energy's stake acquisition in 81MW wind farm

It bought a 67% stake in the wind farm for $53.16m.

The Philippine Competition Commission (PCC) greenlighted AC Energy Philippines’ $53.16m (Php2.7b) acquisition of the Philippine Investment Alliance for Infrastructure’s (PINAI) stake in Philippine Wind Holdings Corporation (PhilWind), which owns a 67% interest in the owner of the 81MW Pagudpud wind farm in the Ilocos Norte province.

AC Energy said in a bourse filing that the PCC declared that the transaction will not likely result in substantial lessening of competition. This follows the signing of a share purchase agreement with PINAI on 4 November 2019.

North Luzon Renewables, the owner of the wind farm, is a generating asset supported by feed-in tariffs (FIT) under the Renewable Energy Act. It is a joint venture of AC Energy, Inc., UPC Philippines Hold Co I B.V., Luzon Wind Energy Holdings B.V. (an affiliate of Mitsubishi Corporation), and PINAI. The wind farm started its commercial operations in November 2014.

The completion of the transaction will be subject to Philippine Competition Commission approval. As such, the completion date is expected to occur on or before 30 June 2020.

AC Energy will have a 31% effective preferred equity ownership and a 15% effective common equity ownership in North Luzon Renewables.