Stock Commentary: AC Energy acquires 49% stake of 837MW solar in Vietnam

Merkado Barkada

February 3, 2022 | 8: 30am

The guts of the deal are this: AC Energy‘s [ACEN 9.50 0.42%] subsidiary, AC Energy Vietnam Investments Pte. Ltd., paid $165 million to perform 49% of Checklist voltaic NT from Checklist voltaic NT’s guardian firm, Huge Energy Community (Hong Kong) Co., Restricted (“Huge HK”).

The closing guardian of Huge HK is Huge Energy Corporation Public Company Restricted (“SUPER”), a “premier” Thai renewable energy developer.

The deal turned into once 100% secondary shares, which manner that ACEN paid the money on to Huge HK for the 49% stake in Checklist voltaic NT; none of that funding will plod to Checklist voltaic NT itself for additional pattern.

Checklist voltaic NT is it sounds as if restructuring, and when the transaction is full, it would like/operate 837 megawatts (MW) of solar potential in Vietnam.

ACEN discloses that the deal for Checklist voltaic NT represents the originate of a strategic partnership with SUPER to “originate higher their renewable footprints in Vietnam” and locate pattern in other ASEAN markets. The deal will improve ACEN’s international renewable energy potential to 1,500 MW, with 1,000 MW of that in Vietnam. 

MB BOTTOM-LINE

While it stays to be considered how the love memoir might per chance per chance grow between Checklist voltaic Philippines NEC [SPNEC 2.32 4.50%] and ACEN for the arrive of SPNEC’s coveted solar-rich property portfolio, ACEN is pushing forward aggressively with its international expansion within the renewable energy self-discipline, in particular in solar.

Because the worth per kilowatt-hour of solar-generated electricity continues to drop, and because the articulate’s electricity consumption continues to rise (in particular once COVID’s toddle on the financial system is largely a thing of the previous), it’s a stable assumption that virtually every country within the articulate will like SPNEC-love opportunities true begging for pattern.

As one of ASEAN’s leaders within the self-discipline, basically the most essential for ACEN shareholders will almost definitely be one of opportunity value: what is the optimum deployment of ACEN’s time, money, and consideration, all over all of its quite loads of opportunities both dwelling and in yet any other country, to consequence within the top rate of return for shareholders both now and in due course?

Deals love these, for projects that are already generating profits that lengthen wrapped within the next shared hobby in regional pattern, offer shareholders both “now” and “later” upside. 

—

Merkado Barkada’s opinions are supplied for informational functions most attention-grabbing, and might per chance per chance no longer be idea to be a recommendation to eradicate or promote any explicit stock. These on daily basis articles are no longer updated with original info, so every investor must enact his or her like due diligence forward of buying and selling, as the facts and figures in every explicit article will like modified.