Philippines: MRC Allied to buy six more renewable-energy developers

Philippines: MRC Allied to buy six more renewable-energy developers

MRC Allied Inc. is eyeing to acquire a significant stake in six more
renewable-energy (RE) developers soon, following the successful acquisition
of a 15-percent stake in a 50-megawatt (MW) solar project in Leyte.

"We are evaluating at least six more. They are all RE firms. We are
confident we can close one to two more before the year ends," MRC Allied
President Gladys Nalda said in an interview after the company's special
stockholders' meeting on Wednesday.

The listed firm acquired a 15-percent stake in the Sulu Electric Power and
Light Philippines Inc. (Sepalco) solar project in Palo, Leyte.

MRC's entry in Sepalco marks one of the many investments the company has
lined up in the coming years as it continuously diversifies into the energy
sector.

Touted as the biggest solar project in Region 8, the Sepalco solar project
has been operating since last year.

"This will complete MRC Allied's 200-MW target for 2017 and, since it's an
operational plant, we shall take an active role in the management of the
power plant," Nalda said.

There are plans, she added, to increase MRC Allied's interest in Sepalco up
to 51 percent.

"We want a majority control of Sepalco," Nalda said. "We made a commitment
to help improve their financial operations so we can acquire a bigger
stake."

MRC Allied's investment in Sepalco costs P255 million, according to Nalda.

"We still have to polish the terms of payment," she added. "If it can be
done, we can partly source form the private placement."

Sepalco, which lies on a 70-hectare property in Palo, Leyte, has a total of
188 solar panels and is connected to the existing 69 kilovolt transmission
line of the National Grid Corp. of the Philippines (NGCP) in the province.

The solar project is designed for 25 years, boosting its potential as a
major solar provider in the country in the coming years.

During Wednesday's meeting, shareholders approved the change in MRC's
primary purpose from a property company to become a 100-percent energy
company.

MRC will now be able "to develop, design, construct, operate, maintain, buy,
acquire, sell, import and export renewable and clean energy equipment,
systems, power plants and technologies that produce electricity from
renewable and clean energy resources, such as, but not limited to, solar,
wind, hydro, geothermal, biomass, liquefied natural gas and other clean and
renewable-energy sources."

As a diversified company, MRC Allied has also been strengthening its
structure. The company has taken in former Energy Secretary Carlos Jericho
Petilla and former National Electrification Administration (NEA)
Administrator Edita Bueno as new members of its board of directors.

Shareholders, likewise, approved an increase in the number of board
directors to nine from seven at present.

"We currently have seven directors and since we have to ensure that we beef
up the team with industry experts and a bigger team, we shall increase the
number of directors to nine from seven, this is to ensure that we strengthen
our corporate governance and improve our corporate structure." Nalda said.

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Link to Original Article:
https://businessmirror.com.ph/mrc-allied-to-buy-six-more-renewable-energy-de
velopers/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com




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