Alternergy signs up for P2.4-B team up with A Brown

A Brown Co., Inc. seeks to get a 40-percent stake in Alternegy Holdings Corp.’s two wind parks for P2.4 billion.

Alternergy said on Friday that it signed a co-investment deal with A Brown’s subsidiary ABC Energy Inc.. This covers the 128-megawatt (MW) Tanay and 64-MW Alabat wind projects.

The group, meanwhile, will continue holding the majority 60 percent ownership in both facilities.

The firm noted that both projects are already in advanced construction stages. They target to complete them by early next year.

“A Brown has a proven investment history in energy and resources development. We also acknowledge the Brown family’s longstanding presence of over 90 years with the progressive municipality of Tanay,” said Gerry Magbanua, president of Alternergy.

Paul Juat, president of ABC Energy, meanwhile, said that the fresh capital to be injected into the wind farms was the “largest single investment” across their group.

Juat said the A Brown Group also has a footprint in the province, especially in real estate and development activities.

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Alternergy said the new round of investments was part of its strategy to further support its expansion in the local renewable energy market

The transaction is still up for regulatory review, as well as clearance from the Philippine Competition Commission.

Alternergy previously reported that its consolidated earnings jumped 27 percent to P165 million for the year ended June 30. Its earnings before interest, taxes, depreciation and amortization also improved by 29 percent to P399 million from P310 million.