Investment ARRAN Pte. Ltd., a Singapore-based GIC Pte member. Ltd. is expected to buy a 17.5 per cent equity interest in AC Energy Philippines, Inc. for P20 billion, said Ayala Corp. (AC) on Monday.

In a press release, the mentioned conglomerate reported that the energy arm of Ayala and the parent company of AC Energy and Infrastructure Corp. (ACEIC) had entered into an investment agreement with Arran Investment on December 30.

The unit previously accepted that the infusion was approved by the unit’s Board of Directors on November 11th.

“The transaction would be rendered by a combination of subscription to four billion primary shares (by private placement) and purchasing of secondary shares from AC Oil,” said Ayala Corp.

The organization plans to close the transaction provided the proposed requirements are fulfilled. These terms include the offer of ACEN stock privileges and legislative authorisations in the first quarter of 2021.

Ayala Corp. claimed that the acquisition of AC Energy’s secondary shares by the GIC subsidiary will rely on regulatory approvals; and if AC Energy is willing to infuse its foreign company into ACEN via a share exchange property.

The exchange is scheduled to take effect in the third quarter of this year.

This change comes after the announcement by ACEN President and Chief Executive Officer Eric T. Francia in November of a business reform and consolidation strategy including the sale of equity interests to three stakeholders, including Arran Investment and its parent company GIC.

Mr. Francia said two months ago during his meeting with the Deputy Secretary for Energy that ACEN was going to require up to $2 billion to achieve his goal of getting the grid 5 gigawatts of deployed energy power.

In a previous briefing, the Chief of ACEN told reporters that AC Energy’s share will decline to about 65 per cent, with Singapore-based GIC owning 17.5 per cent and the public holding 18 per cent.

Mr. Francia also addressed in depth the company’s corporate transformation in five phases, including: the equity listing expected for the first quarter of this year; GIC’s private placement of 4 billion securities by the end of the second quarter; a follow-up public offering on the stock market; and the injection of foreign energy reserves by the selling of secondary shares to GIC through ACEIC.

ACEIC was formerly known as AC Electricity, Inc. before the name change was accepted by the corporate regulator. This came months after Ayala Corp. combined its electricity, water, transport and logistics businesses, which were jointly located under AC Energy.

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