ABOITIZ Power Corp. (AboitizPower) plans to invest P750 million to acquire a 60% stake in a company developing a 191-megawatt (MW) solar power project with battery energy storage in Bukidnon, a province on the southern island of Mindanao.

Aboitiz Renewables, Inc. (ARI), a wholly owned subsidiary of AboitizPower, has entered into a joint development and investment agreement with Manolo Fortich Power Corp. (MFPC), according to separate disclosures to the Philippine Stock Exchange on Tuesday.

MFPC is a subsidiary of ABC Energy, Inc., the wholly owned energy investment arm of A Brown Company, Inc. (ABCI).

Under the agreement, ARI will subscribe to newly issued shares of MFPC, giving it a 60% equity interest in the company — a majority holding — while ABC Energy will retain the remaining 40%.

The proposed investment consists of two subscriptions. ARI will initially take up 3.75 million common shares at P1 each, equivalent to P3.75 million. Following an increase in MFPC's authorized capital stock, ARI will then subscribe to 74.625 million redeemable preferred shares at P10 apiece, amounting to P746.25 million. The combined subscriptions total P750 million, with the preferred share tranche representing 99.5% of the outlay.

"The partnership is expected to bring to the Project the capital, construction and operating capabilities of AboitizPower," ABCI said. The company added that the agreement aligns with its "strategy of developing greenfield energy projects and partnering with established industry players for their construction and operation."

The proposed development comprises a solar power facility with an integrated battery energy storage system in Bukidnon. The companies have yet to disclose the project's total development cost, construction timetable, and target commercial operation date.

ABCI is a Cagayan de Oro City-based holding and real estate development company with investments in agribusiness, energy generation, and mining. ARI, meanwhile, operates 45 renewable energy facilities nationwide and holds a development pipeline of more than 1,000 MW spanning solar, hydro, and wind projects. The Bukidnon project would add a solar-plus-storage development to this portfolio.

AboitizPower serves as the holding company for the Aboitiz Group's investments in power generation, distribution, and retail electricity services. According to Energy Regulatory Commission data, the Aboitiz Group accounts for 24.3% of the country's power generation capacity, equivalent to 6,850.63 MW.

— Sheldeen Joy Talavera, BusinessWorld