Group bids for 30% stake in EDC, Philippines' geothermal power house

Group bids for 30% stake in EDC, Philippines' geothermal power house

A joint venture of Macquarie, Singapore's sovereign wealth fund and Arran
Investment launch bid for 32% stake in Philippines' Energy Development
Company (EDC) valued at around $1.3 billion.

Australian investment and financial group Macquarie teams up with Singapore
sovereign wealth fund GIC in a bid for up to 47.1%% in geothermal power
house Energy Development Company (EDC) in the Philippines. The group would
acquire First Gen's 10.6% stake and public investors' 36.5% stake in EDC

The group has formed Philippines Renewable Energy as a joint venture through
Macquarie Infrastructure and Real Assets (MIRA) and Arran Investment, an
affiliate of GIC.

The offer made by the group is for a minimum 6.6 billion shares and up to a
maximum of 8.9 billion commons shares from shareholders of EDC.

This represents about 32% of EDC's outstanding voting shares. The value is
said to be worth around $1.3 billion (USD).

First Gen Corporation announced it is selling its minority stake in EDC, to
a consortium, but it will still retain control. "While there is a firm
intention to delist the company voluntarily [post-transaction], the specific
terms and procedures for delisting will be agreed at a later stage," PREHC
said in the tender offer report to the Securities and Exchange Commission
(SEC) on August 3, 2017.

First Gen will retain its 40% stake in EDC through unit Red Vulcan's common
share, while PREHC will have up to 47.5% of common shares.

EDC is the largest geothermal operator in the Philippines with an installed
capacity of 1,169 MW geothermal power generation capacity. EDC also operates
hydro and wind power plant.

Macquarie is said to want to increase its renewable energy investment
portfolio, so this offer makes sense.

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Link to Original Article:
http://www.thinkgeoenergy.com/group-bids-for-30-stake-in-edc-philippines-geo
thermal-power-house/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com