Skadden Advises Aboitiz Equity Ventures Inc. In A US$1.6 Billion Philippine Power Investment By JERA.

29 September 2021
 

Skadden is advising Aboitiz Equity Ventures Inc. ("AEV"), a Philippine Stock Exchange ("PSE") listed conglomerate, in its sale of a 25.01% stake in its PSE-listed power generation and distribution subsidiary Aboitiz Power Corporation ("AboitizPower") to JERA, Japan’s largest power generation company. As part of the same transaction, the Aboitiz family holding company, Aboitiz & Company ("ACO"), is also selling a 1.99% stake in AboitizPower to JERA, bringing JERA’s total post-transaction stake to 27.0%. The total purchase price for the transaction is approximately US$1.6 billion.  Upon completion of the transaction AEV will retain control of AboitizPower, owning a 52.0% stake. AEV and JERA also intend to enter into certain business cooperation agreements, potentially involving collaboration in LNG-to-Power projects, fuel sourcing, plant operation and maintenance, and exploration of new generation technologies. The transaction is conditional on certain regulatory approvals and AEV shareholder approval.

 

The Skadden team was led by partners Jonathan Stone and Rajeev Duggal (Singapore), with Counsel Andrew Cohn and associates Arthur Chan and Sonia Char, corporate; partner Andrew Foster, Asia Pacific Counsel Kexin Li (Beijing) and associate Jacqueline Arena, antitrust; partner Steve Kwok and associates Siyu Zhang and Beatriz Paterno, litigation; and partner Alex Jupp (London), and associate Joseph Hone (London), tax. All attorneys are based in Hong Kong except where otherwise noted.