According to the company’s website press release on October 20, 2022, further step toward decarbonization of the Group and co-owner Aboitiz acquires majority stake in Mindanao power plant.
STEAG sells a large part of the shares in its power plant on the Philippine island of Mindanao. The buyer is co-shareholder Aboitiz Power Corp (APC). STEAG had already announced last year that it wanted to sell its stake and initiated a sales process. As part of this process, Aboitiz has now exercised its right of first refusal.
The corresponding contracts were ceremonially signed yesterday, October 19, by the management of both contracting parties in Essen, Germany, after the formal signing had already taken place on September 15, 2022. The final closing of the transaction, which has a value of around 36 million US dollars, is still formally subject to the approval of several indirectly involved contractual partners and Philippine authorities.
Further step toward decarbonization
"With the sale, STEAG is taking another important step on its way of the decarbonization of the Group," says Dr. Ralf Schiele, who is responsible for the Market and Technology divisions on the STEAG Management Board.
For the time being, however, STEAG will remain a minority shareholder in STEAG State Power Inc. (SPI), the owner and operator of the Mindanao power plant. "Since the second co-shareholder, La Filipina Uy Gongco Corporation, has not exercised its proportional right of first refusal, STEAG continue to hold around 15 percent of the operating company, but are still keen to sell this minority share as well," says Ralf Schiele.
However, STEAG will only remain invested in Mindanao until 2031 at the longest, as a build-operate-transfer model provided for the transfer of ownership of the power plant to the state-owned utility and grid operator Power Sector Assets and Liabilities Management Corporation (PSALM) from the very beginning.
