Aboitiz Power Corporation (AboitizPower) said it is entering the global renewable energy market with the acquisition of a wind power company in Vietnam for US$46 million.
The company, which originated in Cebu, announced in a statement on Friday, August 23, that it has signed a share purchase agreement for the acquisition of 100 percent ownership of Mekong Wind Pte. Ltd. from Armstrong Southeast Asia Clean Energy Fund Pte. Ltd.
The acquisition, made through its wholly owned subsidiary AboitizPower International, marks AboitizPower’s entry into Vietnam, considered one of Asia’s most attractive markets.
“This transaction is a milestone for AboitizPower and sets the tone for our expansion in the international market,” AboitizPower president and chief executive officer Erramon I. Aboitiz said.
“We have announced our intentions to go international some time back and we have been prudent in looking for the right opportunity that will bring the best value for the company and our shareholders. This is such a transaction,” he added.
AboitizPower earlier entered into an agreement to develop renewable energy projects in Indonesia. The company also previously said it was considering Myanmar and Papua New Guinea as potential growth markets.
The acquisition in Vietnam captures all legal and economic interest in Mekong Wind, which in turn holds a 99.9999934% direct interest in Dam Nai Wind Power JSC.
Dam Nai Wind owns and operates the 39.4-megawatt (MW) onshore wind power facility in Ninh Thuan Province, Southern Vietnam.
The Dam Nai Wind facility is among the first wind power projects in Vietnam that went online, having commenced commercial operations in late 2017.
“We are excited for this 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. We are proud of what we have done with our Cleanergy brand in the Philippines and we will bring the same level of expertise and dedication to the Vietnam market,” AboitizPower chief operating officer Emmanuel V. Rubio added.
The acquisition is subject to customary closing conditions and is expected to be completed in the fourth quarter of 2019.
AboitizPower, holding company for the Aboitiz Group’s investments in the energy sector, generates some 1,200 MW of clean and renewable energy from its portfolio of hydro, geothermal, and solar power plants under the Cleanergy brand.
The company also operates base load power plants across the country as well as distribution utilities, which are among the biggest private utilities in the country. (Ventures Cebu)