Philippine Daily Inquirer
9:01 pm | Monday, October 14th, 2013
A. Brown Co. Inc. (ABCI) is unloading 80 percent of its share in wholly owned subsidiary Peak Power Energy Inc. to make way for new investors.
As a result, four companies will have nearly equal stakes in the energy unit’s peaking energy projects across various electric cooperatives in Mindanao.
In a disclosure to the Philippine Stock Exchange, ABCI chief finance officer Rosanna Duavit-Santiago said the parent firm had signed a shareholders’ agreement with Enterprise Holdings Corp., World Power Alliance Limited and Power Mavens Holdings Limited for their joint investment in Peak Power.
The shareholders’ agreement confirms the terms and conditions by which Peak Power will be owned, managed and controlled, Santiago said.
The document also covers how Peak Power will implement the development and operation of its power generation projects.
With the entry of new investors to the joint venture, ABCI will hold 20 percent of the total outstanding capital stock while the other shareholders have the following percentage of ownership: Enterprise Holdings Corporation (20 percent), World Power Alliance Limited (30 percent) and Power Mavens Holdings Limited (30 percent), according to the disclosure.
Peak Power was incorporated on Feb. 19, 2013 to implement various projects designed to generate about 110 MW of peaking energy spread across various A+/Green rated electric cooperatives in Mindanao. These are build-operate-maintain and transfer agreements for brand new bunker-fired engines, according to ABCI.
The salient points of the projects are: short gestation, take or pay on the capital expenditure; direct connection to the grid; a significant contribution to address the lack of base load power in the Mindanao grid for the next two to three years; and, in the future, to allow the cooperatives to meet the needs for peaking power, ABCI said.
Peak Power is working to develop, construct and operate diesel power plants in Mindanao through its subsidiaries Peakpower Soccsargen, Inc. and Peakpower San Francisco, Inc.
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Tags: A Brown Co. Inc. , abci , Business , peak power energy inc. , share unloading
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