Repower Energy Development Corp. (REDC) has agreed to acquire Taft Hydroenergy Corp. (THEC) in a P3.925-billion transaction that will expand its hydropower portfolio and increase operating capacity by about 45 percent.
The deal, signed with Tokai Corp. and South East Energy Corp., covers 100 percent of THEC, which owns the 15.93-megawatt Tubig Hydropower Plant in the Visayas. The buyout price includes P1.1 billion in debt.
"The purchase of THEC and its 15.93MW Tubig Hydropower Plant will further grow the portfolio of operational hydropower plants of the company, and thereby contribute to and increase the company's income and cash flow,” the company said.
REDC will invest P1.57 billion for its stake in THEC and assume P440 million in debt as part of the acquisition. Tokai will invest the same amount, while South East Energy will take the remaining stake.
According to REDC, the price was based on the projected cash flows of THEC's hydropower business.
The acquisition will add the 15.93-megawatt Tubig Hydropower Plant to REDC's portfolio, expanding its renewable energy footprint and providing an immediate source of revenue and cash flow.
Once completed, the Tubig facility will become REDC's tenth operating hydropower plant and increase the company's generating capacity by about 45 percent.
"Upon conclusion of this transaction, the new asset will be the 10th operational hydropower plant of the company, thereby increasing the company's operational capacity by around 45 percent," REDC said.
The deal remains subject to regulatory approvals, including clearance from the Philippine Competition Commission, as well as other closing conditions under the share purchase agreement.