18 March 2020 – AC Energy Corporation (PSE: ACEN) today announced the completion of the subscription by an affiliate of GIC Private Limited (“GIC”), Arran Investment Pte Ltd, to four billion primary shares of ACEN, via a private placement.
The private placement enables ACEN to raise additional capital totaling PHP11.88 billion to fund its various developmental and operating projects, as well as potential acquisitions.
The Company previously announced the Board of Directors’ approval of the investment by GIC on November 11, 2020, and the signing of an Investment Agreement with GIC (together with AC Energy and Infrastructure Corporation or “ACEIC”, ACEN’s parent company) on December 30, 2020.
The private placement is the first tranche of GIC’s investment to achieve a 17.5% ownership stake in ACEN (“the Investment”). The Investment will be implemented through a combination of subscription to four billion primary shares via a private placement, and the purchase of secondary shares from ACEIC (the “Top Up”). The Top Up will enable GIC to achieve the target 17.5% percent ownership stake in ACEN, taking into consideration GIC’s expected future dilution, including from the planned infusion of ACEIC’s international assets into ACEN.
With the completion of GIC’s private placement, GIC’s Senior Vice President for Infrastructure, Ms. Nicole Goh Phaik Khim, was elected as director during the Board meeting that followed the closing of the private placement.
“We are delighted to welcome GIC to our energy platform. We have been partners in the Bank of the Philippine Islands and we are delighted to build on this relationship in another fast growing and dynamic sector,” according to Jaime Augusto Zobel de Ayala, Ayala Corporation’s Chairman and CEO.
“Ayala and GIC are both committed to sustainable investments, and we are excited to be partners in ACEN as the company transitions to a low-carbon portfolio. Fernando Zobel de Ayala, AC Energy Chairman and Ayala Corporation’s President and COO said. “GIC provides not only growth capital but also the experience and network that will help us scale up our renewables investments,” Zobel added.
“GIC is pleased to partner with the Ayala Group, the largest and oldest conglomerate in the Philippines, in their journey to build one of Southeast Asia’s leading renewables platforms. With AC Energy’s geographically diversified portfolio of renewable energy assets and proven track record of profitable growth, we believe the company is well-positioned to capture the shift from fossil-based to clean, sustainable energy in the region”, said Ang Eng Seng, GIC’s Chief Investment Officer for Infrastructure.
The completion of the purchase by the GIC affiliate of secondary shares from ACEIC is subject to the completion of the infusion by ACEIC of its international assets into ACEN by way of a property for shares swap, and applicable regulatory approvals.
AlphaPrimus Advisors acted as financial advisor to ACEN and ACEIC for this transaction.