KIC buys stake in PGEC

Kyuden International Corp. (KIC), a wholly owned subsidiary of Kyushu Electric Power Co., Ltd. Inc. Japan, to acquire a 25 percent stake in PetroGreen Energy Corp. (PGEC), Yuchengco’s renewable energy (RE) arm—led by PetroEnergy Resources Corp. (PERC).

In a disclosure Thursday, PERC said the board of directors agreed to sign the stock underwriting agreement and shareholder agreement with KIC. The transaction includes the issuance of initial shares by the General Electricity Company for the Kuwait Investment Company. The shares are equivalent to 25 percent of the equity in the General Electricity and Gas Company upon completion of the pre-deal terms. This will effectively reduce PERC’s interest in PGEC from 90 percent to 67.5 percent.

Board approval was obtained during a meeting on 15 September.

By the way, EEI Power Corp. said. The deal will effectively reduce its stake in PGEC to 7.5 percent.

EEI Power Corporation, a wholly owned subsidiary of EEI Corporation, has entered into a shareholder agreement with KIC, whereby KIC will acquire a 25 percent stake in PGEC. Upon completion of the pre-deal terms, EEI Power’s stake in PGEC will be reduced from 10 percent to 7.5 percent.

PERC is engaged in petroleum exploration and production in Gabon and West Africa and the development of renewable energy in the Philippines. PGEC operates five power plants in the country through three operating companies – the 32 MW Maibarara Geothermal Project by Maibarara Geothermal Inc. and the 70MW Tarlac solar project by PetroSolar Corp. and the 36 MW Nabas-1 wind project by PetroWind Energy Inc.

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