ACEN And ENEX Unwind Property-For-Share Swap Agreement
The respective Boards of Directors of ACEN and ACE Enexor, Inc. ("ENEX") have approved the termination of ACEN and ENEX's property-for-share swap (the "Share Swap"), and both businesses have signed the Deed of Cancellation of the Share Swap on the same day.
Photo Insert: One Subic Power Generation Corporation
To recall, ACEN and ENEX approved the Share Swap on October 18, 2021, which involves ACEN transferring to ENEX (a) its direct interest in Palawan 55 Exploration & Production Corporation ("Palawan 55"), which in turn has an ownership interest in Service Contract 55; (b) its ownership interests in various diesel assets (Bulacan Power Generation Corporation, CIP II Power Corporation, and One Subic Power Generation Corporation); and (c) its interest in Ingrid3 Power Corp.
The transaction would have required a follow-on offering and stock rights offering in accordance with relevant market rules, which would have been difficult to execute given the current economic conditions.
During the last few months, the management teams of ACEN and ENEX have worked diligently and in good faith to plan and map out the various steps required to comply with the aforementioned requirements.
However, given the economic uncertainties caused by the ongoing pandemic and exacerbated by the Ukraine-Russia conflict, this has proven to be extremely difficult.
ACEN will continue to look for alternative ways to transition the diesel assets and its direct ownership interest in Palawan 55, as the company remains committed to achieving 100 percent renewable energy generation by 2025.
Meanwhile, ENEX will continue to investigate relevant opportunities in the energy transition space, including those under Service Contract 55, as management seeks the right partner for this endeavor.