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GOVERNMENT-RUN Philippine National Oil Co. (PNOC) said
Thursday that Red Vulcan Holdings Corp., the winning
bidder of the 60-percent government stake in PNOC-Energy
Development Corp. (PNOC-EDC), paid the full amount of
P58.5 billion for the stake.
PNOC
said the payment concludes the sale of PNOC’s geothermal
subsidiary.
Red
Vulcan is the consortium led by First Gen Corp. and
Netherlands-based Spalmare Holdings B.V. and Prime
Terracota Holdings Corp.
“We are
very extremely confident that we are turning over the
business to the most capable hands, which possess the
right combination of financial wherewithal and high
technical expertise since First Gen, the head of the
consortium, is already engaged in the energy business,”
PNOC president Antonio Cailao said.
The PNOC
official added the government is getting a premium in
the form of P58.5 billion in cash from the country’s
“biggest privatization deal of the year.”
Red
Vulcan won over FDC Geo-Energy Holdings Inc. (P48.525
billion), Panasia Energy Holdings Inc. (P39 billion) and
AP Renewables (33.165 billion) during the public bidding
held November 21.
The
bidding is touted as the most transparent and
professionally run government auction.
Red
Vulcan now gains the majority control of the operational
and financial management of the company.
PNOC-EDC
has been in operation for almost 32 years and has done
drilling and exploration projects in other countries.
The
Development Bank of the
Philippines
and ING provided staple financing facility of $650
million or P27.9 billion to Red Vulcan Holdings.
Cailao
said he believes that the tradition of excellence and
professionalism by which PNOC-EDC has been ran for more
than three decades will continue under the new owners,
and that the company will continue carving a name in the
international energy industry.
“We will
focus our efforts in creating other crown jewels. There
is no limit to what PNOC can do as ‘the energy company’
as we will also benefit partly from this cash infusion.
PNOC can still enter the geothermal business as we did
not agree to a ‘no-compete clause,’ in the purchase
agreement, which will prohibit PNOC from competing with
Red Vulcan,” Cailao said. |
