Alsons acquires Thai partner’s stake PDF Print E-mail
Friday, 19 July 2013 11:10

Publicly-listed Alsons Consolidated Resources Inc. (ACR) has purchased the 40-percent equity held by its Thai partner EGCO International in its subsidiary Conal Holdings Corporation (CHC), the holding firm of the Alcantara group’s ventures into the power sector.

“With the acquisition of EGCO B.V.I.’s share in CHC, ACR will own 100% of the power holding company,” Alsons has noted in its disclosure to the Philippine Stock Exchange.

The cost of the buyout was not made public, but the Alcantara firm stated that such acquisition will be “increasing (its) net income attributable to the parent in ACR’s earnings.”

In a separate statement, EGCO Group president Sahust Pratuknukul noted that the “disposal of (its) interest will allow EGCO to deploy the proceeds and its resource on new investment opportunities in the Philippines.”

The Thai firm’s equity in Conal Holdings covered two power facilities and the management company Alto Power Management Corporation. The plants are the 55-MW diesel facility of the Southern Philippines Power Corporation; and the 110-MW diesel plant of Western Mindanao Power Corporation.

EGCO added that the sell-down was decided “considering the expiry of PPAs (power purchase agreements) of such assets is approaching and additional capital is needed for new project investment.” The Thai company has been eyeing to expand its 460-megawatt coal fired plant in Mauban, Quezon, with the intent of adding 500MW.

Meanwhile, Alsons emphasized that “upon completion of the agreement, ACR will require full control of CHC.” It stressed that such buyout will enable Alsons “to consolidate its ownership and control of the Mapalad Power Corporation’s Iligan diesel power plant”, being a valuable addition to its power generation portfolio.

“The agreement will give ACR the opportunity to continue pursuing the development of new projects in Mindanao and other areas,” the Alcantara firm stressed.