AboitizPower enters international renewable energy market, acquires wind power facility in Vietnam
AboitizPower, through its wholly owned subsidiary AboitizPower International, announced today that it has signed a share purchase agreement for the acquisition of 100% ownership of Mekong Wind Pte. Ltd. (“Mekong Wind”) from Armstrong Southeast Asia Clean Energy Fund Pte. Ltd. The acquisition is subject to customary closing conditions and is expected to complete in the fourth quarter of 2019.
The acquisition captures all legal and economic interest in Mekong Wind, which in turn holds a 99.9999934% direct interest in Dam Nai Wind Power JSC (“Dam Nai Wind”). Dam Nai Wind owns and operates the 39.4-megawatt (MW) onshore wind power facility in Ninh Thuan Province, Southern Vietnam. Ninh Thuan Province boasts some of the most attractive sites for wind energy in the country.
The total purchase consideration payable for the acquisition of Mekong Wind is approximately USD 46 million which may be subject to certain closing adjustments.
Dam Nai Wind is one of the first wind power projects in Vietnam to have been successfully brought online with commercial operations having commenced in late 2017.
The transaction builds on AboitizPower’s investments in the rapid growth of renewable energy and marks its entry into one of Asia’s most attractive markets. Vietnam, with its robust economic growth backed by strong government support, creates an attractive environment for AboitizPower to increase its commitment and contribution to energy supply security in Southeast Asia through its wide experience and expertise in the power sector.
“This transaction is a milestone for AboitizPower and sets the tone for our expansion in the international market. We have announced our intentions to go international some time back and we have been prudent in looking for the right opportunity that will bring the best value for the company and our shareholders. This is such a transaction,” AboitizPower President and Chief Executive Officer Erramon I. Aboitiz said.
“We are excited for this opportunity not only to expand beyond the Philippines but to also bring our experience in the power generation sector, especially in the renewable energy space, to Vietnam. We are proud of what we have done with our Cleanergy brand in the Philippines and we will bring the same level of expertise and dedication to the Vietnam market,” AboitizPower Chief Operating Officer Emmanuel V. Rubio added.
AboitizPower, together with its partners, generates some 1,200 MW of clean and renewable energy from its portfolio of hydro, geothermal, and solar power plants, forming its Cleanergy brand.