PetroEnergy Resources Corporation To Purchase Stakes In Three Renewable Energy Firms

PetroEnergy Resources Corporation or PERC, a Yuchengco energy company, is purchasing the stakes in three renewable energy companies from EEI Power Corporation for P2.69 billion.

PERC announced to the Philippine Stock Exchange that it had signed a share purchase agreement with EEI Power in order to purchase the common shares of PetroSolar Corporation, PetroGreen Energy Corporation (PGEC), and PetroWind Energy Inc. owned by EEI Power.

The move is in line with PERC’s plan to focus on renewable energy and increase its stake in planned and existing projects to take advantage of emerging opportunities within the industry.

PERC will purchase from EEI Power a total of 213.68 million shares, equivalent to 7.5% interest in PGEC at P2.78 each for P594 million. PGEC was formed by PERC, EEI Power, and Kyuden International Corporation.

PERC also purchased 44% interest or 6.99 million shares for P206.46 each in PetroSolar. This joint venture corporation was established by PGEC and EEI Power.

After the completion of the sale conditions, EEI Power no longer has any interest in all three companies. PERC has 138 Megawatts (MW), through PGEC.

PERC has a presence in Gabon and West Africa through Etame and is also involved in renewable energy production in the Philippines via PGEC. PGEC owns and operates power stations that use geothermal energy, wind energy, and solar energy.

House of Investments, the largest shareholder of PERC (which is also the largest shareholder of EEI Corp.), is the parent company of EEI Power.

EEI said that the funds received would be used for the reduction of the company’s obligations to debt and to provide working capital, as the company prepares for more construction work in the Philippines and overseas.