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 Manila-Aboitiz Group stated that it will accelerate its sustainable development transformation after obtaining up to US$1.58 billion through the sale of part of its power business.

Sabin Aboitiz, president and CEO of Aboitiz Equity Ventures (AEV), said the conglomerate needs to get rid of its traditional business and "enter modern business." 

"This provides us with the funds to do so-to seize the opportunity presented by the pandemic. In the next three years, there will be a lot of consolidation in our industry," he added.

On Monday, AEV announced that JERA, one of Japan's largest power distributors, will acquire a 27% stake in Aboitiz Power (AP) for US$1.56 billion.

The transaction involves a 25% stake owned by AEV, and 2% will come from the private parent company of the Aboitiz family.

After the transaction is completed, AEV will still own 52% of Aboitiz Power. Aboitiz stated that they intend to maintain the EBITDA (earnings before interest, taxes, depreciation and amortization) share of its power division at at least 50%.

Associated Press President and CEO Emmanuel Rubio (Emmanuel Rubio) said that with JERA’s 80 GW capacity and its expertise in LNG, the partnership can help the company further realize its fuel Diversification of combinations.

"Of course, as one of Japan's largest generators, this will allow us to benefit from their experience and expertise. This will be transformative for AP. It will expand our network abroad and increase our selectivity. ."

He added that JERA can help AP realize its 10-year vision of increasing its power generation portfolio to 9,200 MW, by adding 3,700 MW of renewable energy capacity to achieve a 50:50 balance between its clean energy and thermal energy portfolio .

Similarly, according to Rubio, JERA has been pursuing a net zero carbon emission target in 2050.

In addition to potential expansion and diversification, AEV Chief Financial Officer Manuel R. Lozano said that the proceeds from the sale of shares can also be used to improve the group's debt situation.

"This will really drive the growth of all our business units. We are fortunate that they are all doing well and there are many opportunities to achieve our goals," he pointed out.

But he did not provide any details about the potential new business, but he said the opportunity was "comprehensive."

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