MANILA Oct 4 The Philippines' Aboitiz Power
Corp said on Tuesday it will acquire stakes held by
funds managed by Blackstone Group LP in a local
coal-fired power plant and another power project under
construction for about $1.2 billion.
The deal, the biggest acquisition in the local power sector
since the industry was deregulated and a government monopoly
dismantled in 2001, would be financed through internally
generated cash and a $650 million loan, AboitizPower said.
The acquisition involves a 66.1 percent indirect interest in
the 604-megawatt GNPower Mariveles Coal Plant and a 40 percent
stake in the 1,336-MW GNPower Dinginin Project, both in Bataan,
north of Manila.
AboitizPower has signed a loan agreement with The Bank of
Tokyo-Mitsubishi UFJ Ltd, DBS Bank Ltd, The Hongkong and
Shanghai Banking Corporation Ltd, Maybank Kim Eng Securities Pte
Ltd, Mizuho Bank Ltd, and Standard Chartered Bank.
Standard Chartered was the financial advisor to AboitizPower
on the deal, a source said.
The company said the acquisition, which is subject to
Philippine regulatory approvals, was in line with its target to
increase its attributable net sellable capacity to 4,000 MW by
"We consider this acquisition very strategic as it gives us
immediate earnings from the operating asset and incremental
capacity in the coming years from the plant under construction
and its expansion," CEO Erramon Aboitiz said in a statement.
The first of two units at the GNPower Dinginin Project is
due to be switched on in 2019.
(Reporting by Enrico dela Cruz; Additional reporting by
Anshuman Daga in Singapore; Editing by Richard Pullin)