Corporate News & Analysis: AP Bids for Mariveles Coal-Fired Power Plants

Aboitiz Power (AP) has the funds and is the preferred bidder for the 60% stake of Sithe Global Power LLC in two 604 MW coal-fired power plants in Mariveles, Bataan.  The bidding is estimated to reach USD500 mn (PHP25 bn).  AP has a low leverage position and has enough internally-generated funds to acquire the stake.  Upon a successful acquisition, revenues and net income are estimated to grow by 14% and 8%, respectively.  That is PHP14.2 bn and PHP1.8 bn, respectively, in peso terms.  This gives AP and mother company AEV additional value for its investors.

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