Repower Energy Development Corp. is expanding its hydropower portfolio through the acquisition of a stake in Taft Hydroenergy Corp., owner of the 15.93-megawatt Tubig Hydropower Plant in the Visayas.
The company said it, together with Tokai Corp. and South East Energy Corp., signed a share purchase agreement on May 28 to acquire 100 percent of THEC, subject to the completion of closing conditions.
The transaction values THEC at P3.93 billion, including an existing P1.1-billion loan. Repower’s share of the acquisition consists of 520 million shares worth P1.57 billion, plus P440 million representing its portion of the outstanding loan.
The acquisition will add the Tubig Hydropower Plant to Repower’s portfolio and increase the company’s operational generating capacity by about 45 percent. Once completed, the facility will become the company’s 10th operating hydropower asset.
The deal reflects continued consolidation in the renewable energy sector as developers race to expand generating capacity amid rising electricity demand and the government’s push for a cleaner energy mix. Hydropower assets remain attractive because they provide stable baseload and renewable power while offering long operating lives and predictable cash flows.
Repower said the acquisition is expected to strengthen recurring income and cash generation by immediately contributing revenues from an operational facility, unlike greenfield projects that require years of development and regulatory approvals.
The purchase also highlights growing investor interest in operating renewable energy assets as the Philippines seeks to accelerate the development of indigenous energy sources and reduce dependence on imported fuels.
Payment for the acquisition will be made upon satisfaction of the conditions set out in the share purchase agreement and completion of the transaction.
