Aboitiz Power Corporation (PSE:AP)’s stocks inched up on Monday’s trading session on news that it has acquired a participating interest in a 110-megawatt geothermal prospects in Indonesia. The company, which is the holding firm for the Aboitiz Group’s investment in power, generation, distribution, retail and power services, traded at P43.05 a share on Monday, up from last week’s P42.70. A total of 3.10 million shares, with a value of P133.16 million, exchanged hands.
Aboitiz Power Corporation (PSE:AP)’s stock rallied on Monday after the listed power firm to the Philippine Stock Exchange that its Singapore-based wholly owned subsidiary Aboitiz Power International Pte Ltd has entered into an agreement with PT Medco Power Indonesia to participate in the exploration and development of a potential 2×55 megawatt greenfield geothermal plant in East Java Province.
In its disclosure, Aboitiz Power Corporation said the project will be undertaken through PT Medco Cahaya Geothermal, a subsidiary of PT Medco Power Indonesia.
Business World Online has reported that Aboitiz Power will take in a 49% stake in the project, which is current in the exploratory stage.
Aboitiz Power Corporation was incorporated on February 13, 1998 as a holding company for the Aboitiz Group’s investments in power generation and distribution.
However, in order to prepare for growth in the power generation industry, AP was repositioned in the third quarter of 2003 as a holding company that owned only power generation assets.
The divestment by AP of its power distribution assets was achieved through a property dividend declaration in the form of AP’s ownership interests in the different power distribution companies.
In 2005, AP consolidated its investments in mini-hydroelectric plants in a single company by transferring all of Hydro Electric Development Corporation’s and Cleanergy, Inc.’s mini-hydroelectric assets into Hedcor, Inc.
PT Medco Power Indonesia owns and operates gas-fired power plants in Batam Island and Palembang.
It develops and operates small-to-medium size independent power projects in Indonesia; and provides power project services with business activities, including operating and maintenance power plant services, as well as project engineering, procurement and construction.
The company focuses on small to medium independent power producers in domestic and international markets.
The company was founded in 2004 and is based in Jakarta, Indonesia. PT Medco Power Indonesia operates as a subsidiary of Pt Saratoga Power. – BusinessNewsAsia.com