Jera to buy 27% stake in Philippines' Aboitiz Power for $1.6bn
Japan’s Jera will acquire 27% of the outstanding shares of Aboitiz Power Corporation, a power utility in the Philippines, for about $1.58bn, it said on September 27.
Jera, a joint venture between Tokyo Electric Power and Chubu Electric Power, has signed an agreement to purchase shares from Aboitiz Power's parent company Aboitiz Equity Ventures and its affiliate companies.
"Completion of the transaction, subject to necessary approvals, will further enhance Jera's presence in the Philippines’ energy sector. Working in conjunction with Aboitiz Power, Jera hopes to significantly advance the expansion of clean and renewable energy in the country," it said.
The companies plan to jointly develop power projects, including LNG-to-power, collaborate on new generation technologies, and participate in aspects of plant operation and maintenance. Jera has also signed a memorandum of understanding with Aboitiz to collaborate in fuel sourcing and management of the LNG required for potential LNG power plants which can supplement intermittent renewable energy.
In addition, the companies are collaborating on a roadmap to reduced CO2 emissions in the Philippines and will work together to explore potential opportunities to develop zero-emission thermal power generation technologies that Jera is developing in Japan.
Aboitiz aims to expand power generation capacity to 9.2 GW and achieve a 50:50 clean energy and thermal capacity mix by 2030. At the same time, Jera is working to eliminate CO2 emissions from its domestic and overseas businesses by 2050.