ABOITIZ Power Corp. has acquired an additional 35.4-percent equity stake in STEAG State Power Inc., the operator of a 210-megawatt coal plant in Misamis Oriental, Mindanao.

The transaction means that Aboitiz now owns a 69.4-percent equity interest in STEAG.

The energy firm said it had finalized the acquisition of 167,648,480 shares in accordance with the terms of a purchase agreement

made on Sept. 15, 2022.

The deal involved a total consideration of $36,081,554.90 plus a locked box interest rate of 4 percent per annum from Jan. 1, 2021 to March 31, 2022.

STEAG operates and maintains

THE COAL-fiRED POWER PLANT, INCLUDING the transmission line and related facilities, at the Phividec Industrial Estate in Misamis Oriental.

Aboitiz Power said the deal was a good opportunity to help manage an existing generation facility that is a vital component of the Mindanao grid and provides affordable and reliable power to many Filipinos.

It added that the acquisition would result in the expansion of attributable net income without adding new coal capacity to the grid.

“Since this is an existing generation facility, there will be no emissions added to the total greenhouse gas emissions of the Philippines,” Aboitiz Power said.

“When the Mindanao-Visayas Interconnection Project comes to fruition, this plant will be able to export much-needed capacity to the Luzon grid, which has experienced tightness of supply reserves in recent years,” it added.

Aboitiz Power’s share price went down 0.94 percent, or 35 centavos, to P37 on Monday.