NEGROS ISLAND Biomass Holdings Inc. has reached contractual agreements to sell its stakes in three biomass-fired power facilities in the Visayas, according to the company’s part owner, the Ayala-led AC Energy Corp., which announced the transaction on Friday.
AC Energy said in a stock market filing that Negros Island Biomass would sell its equity interest to Singapore-based ThomasLloyd CTI Asia Holdings Pte. Ltd., subject to the satisfaction of certain requirements.
Consequently, ThomasLloyd will have complete authority over the 20 megawatt (MW) San Carlos BioPower, the 25 megawatt (MW) North Negros BioPower, and the 25 megawatt (MW) South Negros BioPower facilities.
Negros Island Biomass is a joint venture development holding company formed by AC Energy and the Zabaleta group to produce renewable biomass on the island of Negros. The disclosure did not include any information on the terms of the sale.
ThomasLloyd already indirectly controls more than 90 percent of the economic equity ownership in the biomass-fired power facilities, according to the company.
ThomasLloyd’s purchase of AC Energy will enable the company to completely consolidate and further develop its biopower business, expanding beyond only the power generation sector to include complementary and auxiliary industries, according to the company’s filing.
Meanwhile, AC Energy said that the sale of its indirect minority stake would enable the company to focus its efforts on growing its core solar and wind businesses in order to achieve its goal of achieving 5 gigawatts of renewable capacity by 2025 via acquisitions.
It went on to say that the Zabaleta group is still engaged in the solar and wind energy industries, and that Bronzeoak Clean Energy is still in operation.
A spokesperson for AC Energy said that “Bronzeoak Clean Energy continues to offer management services to ThomasLloyd for the three facilities, as well as continuing as a bioenergy development and management business.”
AC Energy reported a 54 percent rise in its attributable net income to P829.32 million for the first quarter of the year, mostly due to increased revenues from power sales.