YUCHENGCO-led PetroEnergy Resources Corp. has signed a share purchase agreement with EEI Power Corp. to acquire the latter’s share in three renewable energy subsidiaries.
In a stock exchange disclosure, PetroEnergy said it is acquiring EEI Power’s common shares in PetroGreen Energy Corp., PetroSolar Corp., and PetroWind Energy, Inc.
EEI Power is a wholly owned subsidiary of Yuchengco-led construction company EEI Corp.
“The move supports PERC’s plans to focus more on renewable energy and to increase its stake in existing and planned projects, taking advantage of the emerging opportunities in the industry,” PetroEnergy said. PERC is the company’s stock symbol.
PetroGreen is a joint venture corporation between EEI Power and PetroEnergy. PetroWind and PetroSolar are subsidiaries of PetroGreen.
PetroEnergy said it is set to acquire EEI Power’s 7.5% interest or 213.68-million common shares in PetroGreen, 44% interest or 6.99-million common shares in PetroSolar, and 20% interest or 2.87-million common shares in PetroWind upon fulfillment of all conditions for the sale.
“The transaction will monetize EPC’s (EEI Power) assets and the proceeds will be used to reduce EEI’s debt obligations and provide working capital as EEI gears up for additional construction business in the Philippines and abroad, further strengthening its balance sheet,” EEI told the stock exchange.
After the fulfillment of all conditions of the sale, EEI Power will no longer have any interest in PetroGreen, PetroWind, and PetroSolar.
At the local bourse on Tuesday, shares in PetroEnergy closed 1.25% lower to end at P4.86 apiece, while shares in EEI closed 10.45% higher at P4.86 each. — Ashley Erika O. Jose
