ATN Holdings, Inc. has hastened its adoption of renewable energy by developing an initial 1.4 megawatt (MW) solar power plant to provide electricity to its crusher plant and electric trucks for mining, it told the stock exchange on Wednesday.
In its disclosure, the company said that its board of directors in a meeting on March 9 approved several resolutions, including the acceleration of its solar photovoltaic power plant project through a joint venture with foreign partners.
The plant will be built on its 256-hectare property in Montalban, Rizal.
In the same meeting, the board also authorized the company to structure joint venture deals in an “eHub” logistics warehouse, and an electric vehicle project for buses and trucks, under terms and conditions favorable to it.
ATN Holdings’ board also approved the plan for the initial public offering (IPO) of its unit ATN Philippines Solar Energy Group, Inc. (ATN Solar), along with the associated cost of a listing application with the Philippine Stock Exchange, the appointment of an investment banking group and an underwriter.
The company said based on discussions with financial advisers, the executive committee has recommended the IPO as against listing by-way of introduction in listing ATN Solar shares in the exchange.
It said an IPO would be viable for ATN Solar given the supplemental listing rules granted to renewable energy companies with the exemption to the three-year positive financial performance.
ATN Holdings added that the IPO route would have a shorter timeline needed to fund 100 MW of solar projects as against the other option, which requires a two-step process for the listing of shares.
“Current ATN Solar book value is at P0.90/share and expected listing price range of P2.00 to P2.50/share depending on market conditions during the offer period,” it said, adding that public listing of ATN Solar shares may create additional liquidity and prospective value for shareholders of ATN Holdings and Transpacific Broadband Group International, Inc.
ATN Holdings previously said its board had authorized the co-investment with Transpacific of a P2-billion equity participation in a consortium to be formed with the winning bidder of Manila Electric Co.’s competitive selection process for renewable solar energy under a 20-year contract.
ATN Holdings in January said its board had given the go signal to its energy arm to enter into a joint venture agreement with “key energy partners” to build 50 to 100-MW of solar photovoltaic project in the company’s property in Rizal.
For the initial installation of 1.4-MW modular solar plant, ATN Solar intends to partner in a joint venture with a Singapore-based solar project engineering, procurement, and construction contractor.