Business Abstracts

  IBERDROLA, the world’s second-largest wind power producer, has signed a deal to form a consortium that will develop offshore wind power in the Philippines. It is also the largest offshore wind energy provider in the United Kingdom. Iberdrola has a development presence in three continents – Europe, North America, and South America. The Philippine project will provide its foothold in Asia. The company has subsidiaries in France, Germany, Italy, Portugal, and the UK (Scottish Power) in Europe; the USA (Avangrid) in North America; and Brazil (Neoenergia) in South America. The Philippine project is a 3.5-gigawatt offshore wind farm somewhere in a still undisclosed sea in the country. Although the eventual joint corporation is still undisclosed, two other members of the consortium are Filipino-owned Triconti ECC and Swiss-owned Stream Invest Holdings AG. Triconti ECC is a wholly-owned subsidiary of the Windkraft Group, the largest wind energy developer in the Philippines with a portfolio o

  (Source: PICC) The last IPO in 2021 Solar Philippines Nueva Ecija Corp. (SPNEC) has decided to increase the ownership hold of its parent company Solar Philippines Inc. (SPI) after its board approved the increase of the company’s authorized capital stock to 50 billion shares from 8 billion shares. The move increases the authorized capital stock by at least 6.25 times, diluting its other shareholders at roughly the same fold. This will also effectively reduce the effective value of its shares in the market to P0.24 based on its 52-week high price of P1.50. The share-swap will add P4 billion in additional capital to SPNEC. At the current public float of 29.54%, SPI owns 70.46% of SPNEC. With the planned increase of capital stock issues, SPI ownership of SPNEC is expected to increase to an approximate range of 80.0 to 83.75 percent. With the SPNEC stock growing in value from its par of P0.10 to P1.50 at its highest on 28 December last year, its estimated ownership of 57.2 billion shares

  Publicly listed Philippine National Bank (PSE: PNB) disclosed on 28 December 2021 the distribution of stock dividends representing shares of an untraded holding company Philcomsat Holdings Corporation (PSE: PHC). PNB shareholders before 13 May 2021 will receive 0.156886919 shares of PHC for every 1 share of PNB held. However, records in PSE Edge indicate that PHC has not been traded since 4 January 2021. The company also has not declared any dividend at least in the last fiscal year. This means that PNB investors will be effectively buying into PHC without being able to sell these shares or receive any PHC dividend from it. In PHC’s 2020 Annual Report (SEC Form 17-A2020), PNB is not among the top 20 stockholders of PHC, indicating that these shares might have been accumulated by PNB from the conversion of PHC loan with PNB because it is unlikely that PNB bought it from the stock market in the last 12 months.   (Sources: PSE Edge, PHC SEC Form 17-A2020)

  Through share swaps, ACEN Corp. (PSE: ACEN) continues to effectively transfer its non-renewable energy assets to its non-renewable energy subsidiary ACE Enexor, Inc. (ACEX) in its bid to become a fully renewable energy producer and the largest in the Philippines. In its 3 January 2022 disclosure with the PSE, ACEN transferred its 100% interests in Palawan55 Exploration & Production Corporation, Bulacan Power Generation Corporation, and CIP II Power Corporation, and 17.13% interest in One Subic Power Generation Corporation to ACEX for 339,076,058 newly issued common shares. This increases ACEN’s ownership share of ACEX from 75.92% on 15 July 2021 to 89.78% after these swaps. Consequently, publicly owned shares reduce from 23.66% to 10.04%.  ( Sources: PSE Edge)