Philippines: Petron buys San Miguel power plant for $400m

Philippines: Petron buys San Miguel power plant for $400m

Listed oil refining and marketing company Petron Corp has acquired for over
$400 million (P20.29 billion) the 140-megawatt solid fuel-fired power plant
of SMC PowerGen Inc.

The Ang-led company informed the Philippine Stock Exchange that it purchased
on December 23 the power plant's assets located in the Petron Bataan
Refinery, meant "to lower the power and steam costs" of the plant.

SMC PowerGen is one of the subsidiaries of SMC Global Power Holdings, the
energy arm of diversified conglomerate San Miguel Corp (SMC).

"The power plant was used by SMC PowerGen Inc for the production of power
and steam and the company intends to devote the power plant for the same
purpose," Petron said in its statement.

Petron paid today, inclusive of value added tax, more than P15.9 billion and
plans to pay the remaining P4.63 billion before July 23, 2017.

"The [amount of] consideration was negotiated and agreed upon based on the
extent of Power Plant assets," the refinery giant added.

The proposal to buy the plant began last September 15, and was approved by
the board of directors on November 8, 2016.

Petron last October made its debut in the Philippine Dealing & Exchange
(PDEx), raising up to $412.5 million (P20 billion) in its fundraising.

PDEx is the dealing exchange for major banks in the Philippines.

Petron's last trading price decreased 0.10 per cent or P0.0100 to close at
P9.59 on December 23.

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Link to Original Article:
http://www.dealstreetasia.com/stories/philippines-petron-acquires-san-miguel
-power-plant-for-400m-61299/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com