Interest up on PNOC-EDC share sale
Tuesday, July 25, 2006
Some "really big names" have expressed interest in the planned $ 300-million initial public offering of PNOC-Energy Development Corp., according to the company’s president and chief executive.
Paul Aquino told Dow Jones Newswires he hopes the IPO will go ahead in November or December as planned. The PNOC-EDC chief executive’s comments come at a time when some other energy privatizations in the Philippines have encountered delays and difficulties.
"We’ve been getting good feedback on our privatization," Aquino said in an interview. "As a matter of fact, really, really big names have been coming to us here." He didn’t identify prospective investors.
PNOC-EDC expects to raise at least $ 300 million from the sale of a 30 percent to P40 percent stake. The state-owned company develops steam fields that fuel the country’s geothermal power plants.
PNOC-EDC accounts for 1,149 megawatts of the 1,931MW geothermal capacity of the Philippines. Under the government’s Energy Plan, the country’s geothermal capacity is expected to reach 3,132MW by 2013.
The Philippines is the world’s second largest geothermal power producer after the US Aquino said most of the IPO proceeds will go to discover and develop new geothermal steam fields.
Final Stages Of IPO Preparation
As part of the pre-IPO process, PNOC-EDC is settling accounts, and working on a new steam sale agreement, with state utility National Power Corp. (NPC).
"Over the last 20 years, there are certain unsettled accounts with Napocor that we have to put in our books. We still don’t have the final figures yet. The Department of Energy is mediating that one," Aquino said.
Aquino expects to reach a new steam sale pact by the end of this month. "Once we’re finished with all of that, then we can value the company, so we can proceed with the IPO," he said. (Dow Jones)
posted by philpower @ 12:58 PM,
