MANILA: Listed oil refining and marketing company Petron Corp has acquired for over $400 million (P20.29 billion) the 140-megawatt solid fuel-fired power plant of SMC PowerGen Inc. The Ang-led company informed the Philippine Stock Exchange that it purchased on December 23 the power plant’s assets located in the Petron Bataan Refinery, meant “to lower the power and steam costs” of the plant. SMC PowerGen is one of the subsidiaries of SMC Global Power Holdings, the energy arm of diversified conglomerate San Miguel Corp (SMC).
“The power plant was used by SMC PowerGen Inc for the production of power and steam and the company intends to devote the power plant for the same purpose,” Petron said in its statement. Petron paid today, inclusive of value added tax, more than P15.9 billion and plans to pay the remaining P4.63 billion before July 23, 2017. “The [amount of] consideration was negotiated and agreed upon based on the extent of Power Plant assets,” the refinery giant added.