PetroEnergy Resources Corp. (PERC) is cutting its direct stake in wind energy unit PetroWind Energy Inc. (PWEI) to 25 percent from 60 percent under a proposed P1.7-billion deal that will bring in Japan-based SMFL Mirai Partners Co. Ltd. as a major shareholder.

In a disclosure on Thursday, PERC said its board approved the execution of a term sheet with SMFL-MP for the sale of 6.84 million common shares, equivalent to 35 percent of PetroWind’s outstanding capital stock.

PERC direct exposure to PetroWind reduced

The transaction will generate P1.7 billion in proceeds for PERC while substantially reducing its direct exposure to PetroWind.

Before the proposed sale, PERC held a 60-percent direct interest in PetroWind, comprising the 40-percent stake previously held by Thailand-based BCPG and the 20-percent interest formerly owned by EEI Corp.

PERC acquired EEI’s 20-percent PetroWind stake in 2023 as part of a P2.7-billion acquisition of the construction company’s renewable energy interests.

PetroGreen Energy Corp. (PGEC), meanwhile, owns the remaining 40 percent of PetroWind.

Once the P1.7-billion transaction is completed, PERC’s direct ownership will fall to 25 percent, while SMFL-MP will take a 35 percent interest. PGEC will retain its 40 percent stake, making it the single largest shareholder in PetroWind.

PGEC largest PetroWind shareholder

“Upon completion of the proposed transaction, the shareholding in PWEI is expected to be as follows: PetroGreen Energy Corporation-40 percent; PERC-25 percent; and SMFL-MP-35 percent,” PERC said in Thursday’s disclosure.

PetroWind owns and operates the Nabas wind power project in Aklan. Its first phase has a capacity of 36 megawatts, while its expansion added another 13.2 MW.

Term sheet signing on 2 September

PERC expects to sign the term sheet with SMFL-MP on 2 September. The document will lay down the principal terms that will serve as the basis for negotiating the definitive share purchase agreement, shareholders’ agreement and related documents.

The transaction is not yet final and remains subject to the execution of definitive agreements, fulfillment of conditions precedent and necessary corporate and regulatory approvals.

PERC said the deal would also require clearance from the Philippine Competition Commission if applicable.