Philippines: AboitizPower buying out SunEdison interest in two JVs

Philippines: AboitizPower buying out SunEdison interest in two JVs

Philippine-listed Aboitiz Power Corp (AboitizPower) has bought out partner
stakes in two power joint ventures it had with SunE Solar BV (SunE Solar), a
unit of US-based renewable energy firm SunEdison Inc.

As per the compromise agreement, AboitizPower's wholly owned subsidiary
AboitizPower International Pte Ltd (AP International) will acquire the
interests of SunE Solar in the San Carlos Sun Power Inc (Sacasun), and
Maaraw Holdings San Carlos Inc. (Maaraw).

Sacasun is a 59-MW solar power plant in San Carlos City, in Negros
Occidental province. Maaraw Holdings is 60:40 JV by ARI and SunEdison
Philippines Helios BV, respectively, tasked to undertake the acquisition,
development and exploration of the 59-MW solar photovoltaic power generation
project in San Carlos City.

AP International ― through AboitizPower's wholly-owned subsidiary Aboitiz
Renewables Inc (ARI) ― will increase its ownership in Sacasun, and Maaraw
from 60 per cent to 100 per cent as it acquires the entire issued and
outstanding shares of SunE Solar in Sunedison Philippines.

Sunedison Philippines owns 40 per cent equity interest in Maaraw and
Sacasun.

ARI issued default notices to SunE Solar last July 2016 as the latter's
parent firm SunEdison filed a voluntary petition for reorganisation under
Chapter 11 of the US Bankruptcy Code.

"The compromise agreement between AP International and SunE Solar settles
the joint venture issues and provides an exit for Sunedison Philippines in
the Sacasun project," AboitizPower said in its statement.

AboitizPower informed the local stock exchange that the transaction's value
is based on the agreed enterprise value of Sacasun and Maaraw, net of the
amount incurred by ARI for the acquisition of Sacasun's $56.7 million
(P2.882 billion) loan from BDO Unibank Inc (BDO) last December.

"The enterprise value is derived through the discounted cash flows method,"
the power firm added. AboitizPower last traded at P40 per share on Tuesday
(July 11).

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com