A UNIT of a Vivant Corp. subsidiary is set to acquire a 40% interest in a Mindanao-based power generation firm, the listed parent said in a disclosure on Friday.
“On May 5… a subscription agreement between Vivant Integrated Generation Corp. (VIGC) and Minergy Coal Corp. was executed, which allows VIGC to subscribe to 40% of all issued shares of Minergy Coal,” the disclosure read.
VIGC is a wholly owned subsidiary of Vivant Energy Corp., which in turn is 100%-owned by the Cebu-based listed company.
Vivant described Minergy Coal as the company set up by Mindanao Energy Systems, Inc. (Minergy) to build, own and operate a three 55-megawatt (MW) units of coal-fired power plant in the municipality of Balingasag in Misamis Oriental.
“The plant is expected to feed into the franchise area of Cagayan de Proro Electric Power and Light Corp., which covers the city of Cagayan de Oro and adjoining towns by 2017,” the disclosure further said.
Further information on the deal executed by the two parties was not immediately available.
The execution of this deal followed the signing of a memorandum of agreement between VIGC and Minergy last February that would allow the former to invest in the latter’s various power generation projects.
Minergy is an independent power producer established in 1992 to help address the power supply woes in Mindanao.
Vivant’s annual report showed that VIGC is the listed firm’s corporate vehicle for its investments in Abovant Holdings, Inc. and Cebu Energy Development Corp. (CEDC)
Abovant was established in 2007 as a joint venture between VIGC (40%) and Aboitiz Power Corp. through Therma Power, Inc. (60%). It was incorporated to invest in a new power plant in Cebu.
The following year, Abovant teamed up with Global Formosa Holdings, Inc. to form CEDC which was established to build, own, and operate a $450 million 246-MW coal plant in Toledo City, Cebu.
The plant commenced commercial operations in 2011. With Abovant’s 44% stake in CEDC (Global Formosa owns the remaining 56%), VIGC’s effective interest in CEDC is at 17.6%.
Vivant is engaged in energy distribution and generation services. It operates Visayan Electric Company, Inc., which provides electricity in the Metro Cebu and five other municipalities in the province.
The company is also involved in the acquisition of power plant facilities, energy development ventures and marketing of electricity.
Vivant, through Calamian Islands Power Corp. is building a 750-kilowatt diesel-fired power plant in Busuanga and 8-MW bunker-fired power plant in Coron — both in the province of Palawan. The plants are expected to be operational this year.
Through Vivant-Malogo Hydropower Corp., the company will also build a 6-MW hydroelectric power project in Silay, Negros Occidental. The project is expected to be operational by the last quarter of 2015.
Vivant’s net income fell 35.83% to P1.304 billion last year from P2.032 billion in 2012. Revenues slipped 4.92% to P3.617 billion from P3.804 billion, while expenses jumped 31.18% to P2.091 billion from P1.594 billion.
Its shares gained 10 centavos or 0.88% to end P11.50 apiece on Friday from P11.40 each on Thursday. — Claire-Ann Marie C. Feliciano for BWorldOnline.com
