Egco Group expands presence in Philippines
Egco Group is spending additional US$375 million to enlarge its stake in the Quezon power project in the Philippines.
The group said in a statment that the acquisition will increase its ownership interest in the 503 megawatt coal fired Project from 52 per cent to 98 per cent.
As part of the transaction, EGCO will also acquire 100 per cent of the management services company which is responsible for the provision of management and administrative services to the power project.
Under the agreement, Egco will acquire an additional indirect interest in Quezon Power (Philippines) Ltd (QPL) and 100 per cent of InterGen Management Services (Philippines) Ltd. With enlarged stake Egco will assume management control of QPL under a 25-year power purchase agreement.
"QPL is one of the best assets in Southeast Asia with a history of reliable operations, an outstanding environment track record and consistent, stable cash flows. The QPL acquisition is to provide portfolio diversity and long-term value prospects to Egco Group," said Egco President Sahust Pratuknukul. "Furthermore, it also strengthens Egco’s portfolio in the Philippines as well as provide growth opportunities in the near future."
