First Gen interested in buying STEAG’s 38% stake in coal-fired plant
manila Bulletin
May 12, 2006
Lopez-held First Gen Corporation has affirmed keen interest to acquire the 38 percent stake of German firm STEAG AG which is planned for divestment after the 210-megawatt coal-fired power facility kicks off commercial operation.
"Exploratory talks and project investments studies are ongoing. A stake in Mindanao coal project is an option," revealed First Gen vice chairman and chief executive officer Peter D. Garrucho, Jr. during the company’s first stockholders meeting yesterday.
He added that their company already made visits to STEAG’s head office in Essen, Germany for initial discussions on their interest in the project.
"I visited them in Germany to talk with their principals and of course, we’ve been talking with their officers here also…we will continue to search and negotiate for such stakes," Garrucho stressed.
The Mindanao coal facility is due for completion by the end of this year and it would only be after that time that they can open doors for formal negotiation on the divestiture of their 38-percent stake.
If the shares disposal is consummated, STEAG would still remain a majority shareholder in the Mindanao facility with 51 percent stake; as this has been a requirement under its power purchase agreement with the National Power Corporation.
STEAG currently has 89 percent stake STEAG State Power Inc., the corporate vehicle for the Mindanao coal project. The balance of 11 percent is held by local partner, State Investment Trust, Inc.
"We understand from them that they would activate this sale of 38 percent once the plant is completed by the end of the year. We indicated that we’ll be very interested in discussing with them about that," the First Gen top executive has added.
Meanwhile, First Gen noted that it has been pursuing various investment expansion opportunities, "it is an exciting time for our company as we go for growth and we are active in many fronts," Garrucho said.
In October last year, First Gen signed a memorandum of understanding with Marubeni Corporation to pursue non-gas power projects; including plans to bid for geothermal assets being divested in relation to NPC’s privatization.
Through its partnership with BG Asia plc, the company is also working on the construction of another 550-megawatt greenfield natural gas plant, in a site adjacent to the Sta. Rita and San Lorenzo facilities in Batangas.
By the latter part of last year, the company also obtained its environmental compliance certificate from the Department of Environment and Natural Resources for this proposed facility.
The other projects they have been pursuing are gas pipeline; which they plan to start by catering to the needs of United Coconut Chemicals, Inc.
May 12, 2006
Lopez-held First Gen Corporation has affirmed keen interest to acquire the 38 percent stake of German firm STEAG AG which is planned for divestment after the 210-megawatt coal-fired power facility kicks off commercial operation.
"Exploratory talks and project investments studies are ongoing. A stake in Mindanao coal project is an option," revealed First Gen vice chairman and chief executive officer Peter D. Garrucho, Jr. during the company’s first stockholders meeting yesterday.
He added that their company already made visits to STEAG’s head office in Essen, Germany for initial discussions on their interest in the project.
"I visited them in Germany to talk with their principals and of course, we’ve been talking with their officers here also…we will continue to search and negotiate for such stakes," Garrucho stressed.
The Mindanao coal facility is due for completion by the end of this year and it would only be after that time that they can open doors for formal negotiation on the divestiture of their 38-percent stake.
If the shares disposal is consummated, STEAG would still remain a majority shareholder in the Mindanao facility with 51 percent stake; as this has been a requirement under its power purchase agreement with the National Power Corporation.
STEAG currently has 89 percent stake STEAG State Power Inc., the corporate vehicle for the Mindanao coal project. The balance of 11 percent is held by local partner, State Investment Trust, Inc.
"We understand from them that they would activate this sale of 38 percent once the plant is completed by the end of the year. We indicated that we’ll be very interested in discussing with them about that," the First Gen top executive has added.
Meanwhile, First Gen noted that it has been pursuing various investment expansion opportunities, "it is an exciting time for our company as we go for growth and we are active in many fronts," Garrucho said.
In October last year, First Gen signed a memorandum of understanding with Marubeni Corporation to pursue non-gas power projects; including plans to bid for geothermal assets being divested in relation to NPC’s privatization.
Through its partnership with BG Asia plc, the company is also working on the construction of another 550-megawatt greenfield natural gas plant, in a site adjacent to the Sta. Rita and San Lorenzo facilities in Batangas.
By the latter part of last year, the company also obtained its environmental compliance certificate from the Department of Environment and Natural Resources for this proposed facility.
The other projects they have been pursuing are gas pipeline; which they plan to start by catering to the needs of United Coconut Chemicals, Inc.
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