By Myrna M. Velasco
For its first overseas investment foray, Aboitiz Power Corporation has acquired a wind power facility which is sited in Ninh Thuan province in Vietnam that is of 39.4-megawatt capacity and valued at US$46 million.
Via its wholly owned subsidiary AboitizPower International, the company noted that it sealed a share purchase agreement (SPA) for the acquisition of 100 percent ownership in the Mekong Wind Pte Ltd. venture from its original developer Armstrong Southeast Asia Clean Energy Fund Pte. Ltd.
“The acquisition is subject to customary closing conditions and is expected to complete in the fourth quarter of 2019,” the Filipino firm said.
For the asset buy, Aboitiz Power disclosed that the transaction value had been set at US$46 million, albeit it emphasized that this would still be “subject to certain closing adjustments.”
Aboitiz Power President and Chief Executive Officer Erramon I. Aboitiz considers the Vietnam acquisition as “milestone transaction,” because this set the company’s expansion pathway into international energy markets.
As he stressed, the company had always indicated its intention “to go international some time back and we have been prudent in looking for the right opportunity that will bring best value for the company and our shareholders.”
Aboitiz Power further explained that the merger and acquisition (M&A) deal “captures all legal and economic interest in Mekong wind, which in turn holds 99.99% direct interest in Dam Nai Wind Power PSC.”
Dam Nai Wind is the owner and operator of the 39.4-megawatt wind facility which is the subject of the acquisition deal.
As emphasized, the wind facility is one of the RE power projects in the Vietnamese market “to have been successfully brought online” – having commenced commercial operations latter part of 2017.
Vietnam is considered an attractive market at this time for RE investments, as it has just entered a phase for its grant of feed-in-tariff (FIT) incentives for this particular segment of its energy sector.
Aboitiz Power Chief Operating Officer Emmanuel V. Rubio, for his part, has sounded off the company’s excitement for the opportunity “not only to expand beyond the Philippines but to also bring our experience in the power generation sector, especially in the renewable energy space to Vietnam.”