Geothermal firm sets IPO in September
Sunday, May 28, 2006
THE GEOTHERMAL arm of the state-run Philippine National Oil Co. (PNOC) said on Sunday it would sell about 30 to 40 percent of its outstanding shares through an initial public offering in September.
The 30-40 percent stake in the unit, PNOC-EDC, was estimated by the government to be worth around one billion dollars last year.
PNOC-EDC dropped an earlier plan to sell a large part of the 30-40 percent stake to strategic partners, though foreigners would be allowed to buy shares via the public offer, Eduardo Manalac, the group's president said.
"The intent or hope is to complete the IPO by the start of September," Manalac told reporters, adding that part of the proceeds from the offer would be used for debt payments.
The sale of PNOC-EDC shares would have to be approved by the company's parent firm, PNOC, and the government.
PNOC-EDC accounts for about 60 percent of total installed geothermal energy capacity in the Philippines, the world's second-biggest producer of geothermal energy.
The company supplies fuel to 12 power plants.
The Philippines decided in 1997 to privatize PNOC-EDC, but the process was delayed by the Asian economic crisis and weak equity markets.
The PNOC-EDC privatization is part of the government's policy to reduce its role in industries where there are private-sector interests and to slash its hefty budget deficit.
posted by philpower @ 8:03 PM,
