ABOITIZ Power Corp. has completed its acquisition of more shares in STEAG State Power Inc., giving it a controlling stake in the power plant operator.
In a stock exchange disclosure, AboitizPower said it had acquired 167.65 million shares of STEAG State Power for about $36.08 million under a share purchase agreement signed in September last year.
“As of June 2, 2023, AboitizPower holds a 69.4% effective equity interest in [STEAG State Power],” AboitizPower told the stock exchange.
The acquired shares constitute 35.4% of the outstanding capital stock of the target company, it said.
AboitizPower said the total consideration for the shares included locked box interest at a simple rate of 4% per annum on the basis of a 365-day year from Jan. 1, 2021 to March 31, 2022.
According to its website, STEAG State Power owns and operates a 210-megawatt (MW) coal-fired thermal power plant in Mindanao.
The power plant was established under a build-operate-tansfer partnership with National Power Corp. for a period of 25 years. It started commercial operations in November 2006.
At the local bourse on Monday, shares in the company fell by 35 centavos or 0.94% to end at P37.00 each. — Ashley Erika O. Jose