Philippine-listed renewable energy firm Repower Energy Development Corporation said it is acquiring a hydropower plant in Eastern Samar in a deal valued at P3.925 billion, marking a major expansion of its operating portfolio in the Visayas.
In a disclosure, the company said it, together with other entities, signed a share purchase agreement on May 28 to acquire 100% of the capital stock of Taft Hydroenergy Corporation (THEC), owner of the 15.93-megawatt Tubig Hydropower Plant.
The Tubig Hydropower Plant refers to run-of-river hydroelectric facilities located along the Taft-Tubig River within the Samar Island Natural Park in Eastern Samar.
Repower Energy said the acquisition would increase its operational hydropower capacity by around 45% and make the Tubig facility its 10th operational hydropower plant. The company said the transaction is expected to contribute to higher income and cash flow.
The transaction’s total consideration amounts to P3.925 billion, including a P1.1-billion loan. Repower Energy’s share in the acquisition consists of 520 million shares worth P1.57 billion, while its share of the loan totals P440 million.
The remaining shares will be acquired by Tokai Corporation and South East Energy Corporation, according to the disclosure.
Repower Energy said the acquisition price was based on the “cashflow of the hydropower business” of THEC.
The deal remains subject to several closing conditions, including clearance from the Philippine Competition Commission (PCC), compliance with business warranties, lender consents, and other customary regulatory approvals.
THEC’s Tubig Hydropower Plant is currently its sole major project, according to the disclosure. Majority ownership of THEC is held by Magis Energy Holdings Corporation, which owns about 78.84% of the company.
Repower Energy’s board approved the transaction on April 13, while stockholder and regulatory approvals are still pending.