ABOITIZ Power Corporation (AboitizPower) said Friday, August 23, that it has signed a share purchase agreement for the acquisition of a wind power firm in Vietnam for US$46 million.
AboitizPower acquired 100 percent ownership of Mekong Wind Pte. Ltd. from Armstrong Southeast Asia Clean Energy Fund Pte. Ltd. through its wholly owned subsidiary AboitizPower International.
The transaction marks AboitizPower’s entry into one of Asia’s most attractive markets.
Vietnam is among the Asian economies that has consistently posted strong economic growth backed by strong government support.
“This transaction is a milestone for AboitizPower and sets the tone for our expansion in the international market. We have announced our intentions to go international some time back and we have been prudent in looking for the right opportunity that will bring the best value for the company and our shareholders. This is such a transaction,” AboitizPower president and chief executive officer Erramon I. Aboitiz said.
The acquisition captures all legal and economic interest in Mekong Wind, which in turn holds a 99.9999934% direct interest in Dam Nai Wind Power JSC.
Dam Nai Wind owns and operates the 39.4-megawatt (MW) onshore wind power facility in Ninh Thuan Province, Southern Vietnam.
The Dam Nai Wind facility is one of the first wind power projects in Vietnam to have been brought online. Commercial operations commenced in late 2017.
“We are excited for this opportunity not only to expand beyond the Philippines but to also bring our experience in the power generation sector, especially in the renewable energy space, to Vietnam. We are proud of what we have done with our Cleanergy brand in the Philippines and we will bring the same level of expertise and dedication to the Vietnam market,” AboitizPower chief operating officer Emmanuel V. Rubio added.
The acquisition is subject to customary closing conditions and is expected to be completed in the fourth quarter of 2019.
AboitizPower and its partners generate some 1,200 MW of clean and renewable energy from its portfolio of hydro, geothermal, and solar power plants under its Cleanergy brand. (From PR/SunStar Philippines)