ACEN infuses P35M into energy services arm

Ayala-led renewable energy firm ACEN Corp. is injecting P35.25 million into its wholly owned operations subsidiary to strengthen the management, maintenance, and regulatory compliance of its local power generation and energy storage assets.

In a stock exchange disclosure on Friday, ACEN said it entered into a subscription agreement with ACEN Operations Services Inc. (ACEN Ops) covering 35.25 million shares valued at P1 apiece.

The transaction involves the acquisition of 3.525 million common shares and 31.725 million redeemable preferred shares, bringing the total investment to P35.25 million, payable in cash.

“The subscription is pursuant to a committed funding by ACEN to ACEN Ops, its wholly-owned subsidiary, to enable ACEN Ops’ provision of management, technical, administrative, and support services for the operation, maintenance, performance, and regulatory compliance of ACEN’s Philippine power generation and energy storage assets,” the disclosure read.

ACEN Ops serves as the company's operational support arm, providing services to its local power generation businesses.

The subscription represents 56 percent of ACEN Ops' total outstanding shares, although the subsidiary remains wholly owned by ACEN.

The company said the transaction was approved by its board of directors on 7 October 2024, with no conditions precedent to closing.

To recall, ACEN expects its operating capacity to exceed 8 gigawatts by the end of the year, with about 15 percent coming from solar, wind and battery projects across its domestic and international portfolio.

The company, which has transitioned its generation portfolio to 100-percent renewable energy, is also targeting net-zero greenhouse gas emissions by 2050.