Yuchengco-led PetroEnergy Resources Corp. (PERC) said its board has approved the sale of a 35% stake in PetroWind Energy, Inc. (PWEI) to Japan-based SMFL Mirai Partners Co., Ltd. (SMFL-MP) for P1.7 billion, weeks after the company completed its buyout of former partner BCPG Public Co. Ltd.'s holding in the Nabas wind farm operator.

In a regulatory filing on Thursday, PERC said the board cleared the sale of 6.84 million common shares in PWEI to SMFL-MP.

The two parties are set to sign a term sheet on Sept. 2, paving the way for the execution of a share purchase agreement, a shareholders' agreement, and related documents that will formalize the transaction.

"The closing of the proposed transaction will be subject to the execution of the definitive agreements, the satisfaction of conditions precedents, and the receipt of the necessary corporate and regulatory approvals, including clearance from the Philippine Competition Commission, if required," the company said.

Once the deal is completed, PERC will retain a 25% stake in PWEI, while its subsidiary PetroGreen Energy Corp. will hold 40%.

SMFL-MP is a wholly owned subsidiary of Sumitomo Mitsui Finance and Leasing Co., Ltd. and is focused on real estate, environmental, and energy businesses.

The transaction follows PERC's completion earlier this month of its acquisition of the remaining 40% stake in PWEI held by Thailand's BCPG Public Co. Ltd. for P1.9 billion.

"The acquisition is consistent with PERC's strategy to simplify its ownership structure and increase its direct economic participation in its renewable energy portfolio," PERC said.

PWEI owns and develops a 36-megawatt (MW) wind power project and a 13.2-MW expansion in Nabas and Malay, Aklan. The first phase began commercial operations in 2015, while the remaining capacity is under development.

The wind farm operator has already secured a final certificate of approval to connect from the National Grid Corp. of the Philippines and is awaiting a certificate of compliance from the Energy Regulatory Commission.

For a project at this stage, the remaining approvals matter because they determine when the operator can move from development toward commercial operation and revenue recognition for the expansion, subject to the completion of the required filings and permits. PERC is a publicly listed energy company with businesses in upstream oil exploration and development, renewable energy development, and power generation.

At the local bourse on Thursday, PERC shares closed unchanged at P4 apiece. — Sheldeen Joy Talavera