In a press release dated September 9, 2020, Ayala Corporation ($AC) announced the sale of its 20% holdings in Infigen Energy to Spain’s Iberdrola Group at 0.92 AUD a share. AC accumulated its holdings in Infigen Energy in July at an average cost of 0.794 AUD.
In just a period of around two months, AC was able to make a quick profit of around 1 Billion Pesos for that Infigen Energy transaction.
AC’s direct energy investments is through its AC Energy, Inc., its energy platform. AC’s stake in Infigen Energy was held through UAC Energy Holdings (“UAC”). UAC is an Australian proprietary company that is owned by AC Energy Group (AC Energy) (as to 75%) and UPC Renewables Australia (trading as UPC\AC Renewables Australia) (as to 25%). UPC\AC Renewables Australia is in turn operated as a joint venture between AC Energy and the UPC Renewables Group which has been operating in Australia for three and a half years and directly employs 30 full time employees.
Had AC through it energy platform, AC Energy, Inc. pursued the acquisition of all of Infigen Energy by matching Iberdrola Group’s tender offer, AC would have to raise debts to fund the acquisition which at these times is not so easy. Raising the white flag to Iberdrola Group in the Infigen Energy battle was a brilliant move of AC. It did not only give them a quick profit of around a billion peso, it also relieved AC of raising more debts.
AC is in the process of consolidating its energy assets into AC Energy Corporation (ACEN). In a three month period ACEN has risen by around 42%.
Disclaimer: This is an independent analysis for discussion purposes with the aim of giving stock traders and investors an independent perspective. Accuretti Systems Inc. in the course of day to day trading may have own, or is considering buying or disposing, the shares of the companies mentioned in this commentary.