Aboitiz Power Corporation from the Philippines has announced a decision to terminate its planned acquisition of Vietnam’s Mekong Wind due to a condition precedent being unmet by the agreed longstop date.
|AboitizPower terminates deal to buy wind farm in Vietnam |
The power firm said that it decided to exercise its right to terminate the transaction that involves a 100 per cent acquisition by subsidiary Aboitiz Power International Pte., Ltd. of Mekong Wind Pte., Ltd. from Armstrong Southeast Asia Clean Energy Fund Pte., Ltd. (AAM), according to newswire Businessmirror.
According to AboitizPower president Emmanuel Rubio, the corporation cannot disclose details as the parties are still bound by the confidentiality agreement. The corporation is still in discussions with AAM to revisit the acquisition at a future date.
Previously, AboitizPower, through its wholly-owned subsidiary AboitizPower International, announced that it has signed a share purchase agreement for the acquisition of 100 per cent ownership of Mekong Wind from Armstrong Southeast Asia Clean Energy Fund Pte., Ltd. The acquisition is subject to customary closing conditions and was 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 99.9 per cent direct interest in Dam Nai Wind Power JSC. Dam Nai Wind owns and operates the 39.4MW onshore wind power facility in the central province of Ninh Thuan, which 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 $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 at that time.