PetroEnergy to sell 35% Nabas wind stake to Japan firm for P1.7 billion

YUCHENGCO-LED PetroEnergy Resources Corp. (PERC) said its board has approved the sale of a 35% stake in PetroWind Energy, Inc. (PWEI) to Japan-based SMFL Mirai Partners Co., Ltd. (SMFL-MP) for P1.7 billion, weeks after PERC completed the acquisition of former partner BCPG Public Co. Ltd.’s stake in the Nabas wind farm operator.

In a regulatory filing on Thursday, PERC said its board approved the sale of 6.84 million common shares in PWEI to SMFL-MP.

PERC said it and SMFL-MP will sign a term sheet on Sept. 2 ahead of the execution of a share purchase agreement, shareholders’ agreement, and related documents to formalize the transaction.

“The closing of the proposed transaction will be subject to the execution of the definitive agreements, the satisfaction of conditions precedents, and the receipt of the necessary corporate and regulatory approvals, including clearance from the Philippine Competition Commission, if required,” the company said.

PERC said that once the transaction is completed, it will retain a 25% stake in PWEI, while subsidiary PetroGreen Energy Corp. will hold 40%.

The company said SMFL-MP is a wholly owned subsidiary of Sumitomo Mitsui Finance and Leasing Co., Ltd. and is focused on real estate, environmental, and energy businesses.

Earlier this month, PERC said it completed the acquisition of the remaining 40% stake in PWEI held by Thailand’s BCPG Public Co. Ltd. for P1.9 billion.

“The acquisition is consistent with PERC’s strategy to simplify its ownership structure and increase its direct economic participation in its renewable energy portfolio,” PERC said.

PERC said PWEI owns and develops a 36-megawatt (MW) wind power project and a 13.2-MW expansion in Nabas and Malay, Aklan.

The company said the first phase began commercial operations in 2015, while the remaining capacity is under development.

PERC said PWEI had previously secured a final certificate of approval to connect from the National Grid Corp. of the Philippines and is awaiting a certificate of compliance from the Energy Regulatory Commission.

PERC said it is a publicly listed energy company with businesses in upstream oil exploration and development, renewable energy development, and power generation.

At the local bourse on Thursday, PERC shares closed unchanged at P4 apiece. — Sheldeen Joy Talavera