A Brown to buy DMCI’s power facility, property in Iloilo

Listed A Brown Co. Inc. said on Friday that it intends to acquire DMCI Power Corp.’s 30-hectare land and 100-megawatt coal-fired power plant in Concepcion, Iloilo. A Brown, through its subsidiary Palm Thermal Consolidated Holdings Corp., will buy 100 percent of the DMCI Power's outstanding capital stock of the coal-fired power plant in Concepcion, Iloilo. And through its new real estate arm, Panay Consolidated Land Holdings Corp., A Brown will also acquire DMCI Power’s 30 hectares of land in Iloilo. In a disclosure to the Philippine Stock Exchange, A Brown said that its deal with the DMCI Power will "only be effective" the moment the DMCI Power obtains the required corporate and regulatory approvals from government authorities. The coal plant in Concepcion is still under construction, but the project was stalled after some environmentalists in Panay provinces opposed against it. The DMCI Power had been planning about the operations of the coal plant since 2007. The coal-plant project in Concepcion is estimated to cost around P7 billion. DMCI Power president Nestor Dadivas confirmed the sale of the coal plant to A Brown. “We’re selling it because we have no power supply agreement with the electric cooperatives," he told reporters, but refused to disclose financial details of the deal. DMCI Power’s parent firm is Consunji-led DMCI Holdings Inc., which has interests in general construction, construction, and construction-related businesses. A Brown, managed by businessman Walter Brown, on the other hand, is engaged in real estate development in Cagayan de Oro, Rizal, and Bukidnon. — JE/OMG, GMANews.TV