YUCHENGCO-LED PetroEnergy Resources Corp. said on Thursday that its board had approved to sell 25% of its shareholdings in PetroGreen Energy Corp. to Kyuden International Corp. (KIC), a subsidiary of Japan’s Kyushu Electric Power Co., Inc.
In a stock exchange disclosure, PetroEnergy said that divestment of shares from its renewable energy arm prescribes the issuance of primary shares “in favor of KIC equal to 25% equity stake in PetroGreen upon completion of the conditions precedent.”
PetroEnergy said that the transaction will reduce its interest in PetroGreen to 67.5% from 90%.
In a separate regulatory filing, EEI Corp. said its subsidiary EEI Power Corp. entered into a shareholders’ agreement with KIC.
Upon the completion of KIC and PetroGreen’s transaction, EEI Power’s interest in PetroGreen will be reduced to 7.5% from 10%.
KIC is the investment arm of Kyushu Electric and has investments in the United States, Mexico, Taiwan, Vietnam, and the Philippines.
Kyushu Electric is the exclusive power provider and distributor in Kyushu island and operates 18.32 gigawatts of power facilities using thermal, geothermal, hydro, and nuclear with 154,434 kilometers of high- and low-voltage transmission systems.
On Thursday, shares in PetroEnergy closed unchanged at P4.94 apiece. — Ashley Erika O. Jose
