Commission Decision No. 20-M-017/2020:
Proposed Joint Venture among Axia Power Holdings Philippines Corporation,
AC Energy Philippines Inc, and ACE Endevor Inc.
over Ingrid Power Holdings Inc.
The proposed transaction is the formation of a joint venture through the acquisition by AC Energy Philippines, Inc. (AC Energy) and Axia Power Holdings Philippines Corporation (Axia Power) of all the voting shares in Ingrid Power Holdings, Inc. (Ingrid Power).
Ingrid Power’s sole purpose is the development, financing, construction, and operation of a 150MW high-speed, diesel-fired power plant project located in Brgy. Malaya, Pililla, Rizal (Ingrid Project). The plant aims to operationally supply peaking and reserve power to the Luzon grid by the first quarter of 2021.
In the proposed joint venture, AC Energy and Axia Power shall each hold 50% of the voting shares of Ingrid Power. To this end, AC Energy will hold 45% economic rights, while its affiliate, ACE Endevor Inc. (Endevor), shall have a 5-percent share of the economic rights in the venture. However, Endevor is not entitled to any participation in the operations and/or management of the Ingrid Project.
Parties to the transaction are both power generators and operators. AC Energy, is an integrated power solutions company engaged in the business of power generation, wholesale and electricity market in the country. Its Philippine portfolio includes renewable energy operations in Ilocos Norte, Negros Oriental, Negros Occidental; thermal power in Batangas; coal power and ongoing venture in Bataan; and another ongoing project in Kauswagan, Lanao del Norte.
On the other hand, Axia Power is an investment holding arm of Marubeni Corporation in the Philippines, and is wholly owned by Marubeni Corporation thorough Axia Power Holdings, BV. Axia Power, as of April 2020, has 50% indirect ownership and interests in San Roque Power Corporation, which in turn operates the San Roque Multipurpose Project in Pangasinan for hydroelectric power, irrigation, flood control, and downstream water quality.