Seizing opportunities: Aboitiz family takes control of Mindanao power firm

Aboitiz Power Corp. is acquiring an additional 35.4 percent stake worth $36 million in STEAG State Power Inc. (SPI), which owns and runs a 210-megawatt coal-fired power­ plant (including the transmission line and related facilities) on the southern island of Mindanao.

In a regulatory filing, AboitizPower said it would purchase 167.65 million SPI shares at $0.226 per share. This would bring AboitizPower’s total shareholdings in SPI to 69.4 percent.

“This is a good opportunity to help sustainably manage an existing generation facility, which is a vital component of the Mindanao grid and provides affordable and reliable power to many Filipinos. Since this is an existing generation facility, there are no emissions added to the total GHG emissions of the Philippines,” the company said.

Early this year, Aboitiz Power received a transfer notice from Germany’s STEAG GmbH (STEAG) of its intention to sell its shares in SPI.

Aboitiz Power then informed STEAG of its intention to exercise its right of first refusal to purchase the portion it is entitled to, equivalent to 35.4 percent of the total issued and outstanding capital stock of the company.

“When the Mindanao-Visayas Interconnection Project comes to fruition (in October 2022 according to NGCP), this plant will be able to export much-needed capacity to the Luzon grid, which has experienced tightness of supply reserves in recent years,” AboitizPower said.

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