LISTED holding company A Brown Co., Inc. (ABCI) said on Monday that the board of directors of its subsidiary ABC Energy Inc. (ABCEI) approved the proposal to sell its 20% equity interest in Palm Concepcion Power Corp. (PCPC).
“The divestment will enable A Brown Group to access additional capital in support of its strategic objectives,” ABCI said in a stock exchange disclosure.
The company did not disclose any financial details about the proposed sale.
The proceeds from the sale are allocated to “strengthening core business segments, accelerating green energy initiatives, and reducing debt to enhance capital efficiency.”
“Furthermore, the Group will proactively pursue investment opportunities in new sectors to diversify and secure long-term revenue streams,” the company said.
PCPC is a domestic corporation engaged in power generation and operating a coal-fired plant on Panay Island.
“The transaction is a strategic move that allows the Group to unlock value from a minority, non-controlling stake and redeploy capital into high-impact opportunities that enhance long-term value creation and drive shareholder returns,” ABCI said.
In March, the Securities and Exchange Commission approved the incorporation of Manolo Fortich Power Corp. (MFPC), which will operate under ABCEI.
According to ABCI, MFPC’s primary purpose is to acquire, develop, construct, invest in, and operate power-generating plants, including solar power facilities, and engage in power generation.
MFPC will also develop, assemble, and operate other power-related facilities, equipment, and systems, as well as conventional and renewable energy resources.
The company will be involved in electricity and carbon credit sales, wholesale and retail electricity supply, aggregation, and the operation and maintenance of power plants.
ABCI, a Mindanao-based company, has interests in property development, power generation, public utilities, and agribusiness.
On Tuesday, ABCI shares climbed by 18.03%, closing at P0.72 each. — Sheldeen Joy Talavera