Kyuden International Corp. (KIC), a wholly-owned subsidiary of Japan’s Kyushu Electric Power Co. Inc., will acquire a 25 percent interest in Yuchengco-led PetroGreen Energy Corp. (PGEC).
The board PetroEnergy Resources Corp. (PERC) approved the signing of a share subscription agreement with KIC Thursday.
PERC’s renewable energy subsidiary PGEC will issue primary shares in favor of KIC equal to a 25 percent stake upon completing the conditions precedent for the transaction.
This will reduce PERC’s interest in PGEC from 90 percent to 67.5 percent.
Meanwhile, another Yuchengco-owned firm EEI Power Corp. entered into a shareholders’ agreement with KIC.
Upon completion of the conditions precedent for the transaction, EEI Power’s interest in PGEC will be trimmed from 10 percent to 7.5 percent.
KIC is the overseas investment arm of Kyushu and has investments in the United States, Mexico, Taiwan, Vietnam, and the Philippines, among others.
Kyushu is the exclusive power provider and distributor on Kyushu island and operates 18.32 gigawatt-hours of power facilities using thermal, geothermal, hydro, and nuclear with 154,434 km of high- and low-voltage transmission systems.