Star Shipping diversifying into energy sector
Tugboat and salvaging firm Harbor Star Shipping Services, Inc. (TUGS) has diversified to the energy sector with the acquisition of a majority stake in a renewable energy company for US$6.3 million.
In a disclosure to the Philippine Stock Exchange, TUGS said it has acquired, through wholly-owned subsidiary Harbor Star Energy Corporation (HSEC), 60 percent of Astronergy Development Gensan, Inc. (ADGI).
HSEC entered into definitive agreements for the purchase of 45 percent of the issued capital stock of ADGI from existing shareholders and is subscribing to primary shares to own up to 60 percent of ADGI.
ADGI has permits, licenses, and entitlements to operate a 25MW, expandable to 75MW, solar power plant in General Santos.
It has been issued a Certificate of Commerciality by the Department of Energy and has an existing ERC-approved Power Purchase Agreement (PPA) with South Cotobato II Electric Cooperative, Inc. (SOCOTECO II).
Under the PPA, SOCOTECO-II will purchase all the energy output from the project. The construction of the initial 25MW solar power plant will be completed by the 2nd quarter of 2018.
“The entry of TUGS in the energy sector is pursuant to its strategy to diversify its business interests focusing on core industries,” the company said.
By investing in solar power and General Santos City, TUGS said it is positioning itself in “the energy sector of the future and a territory where major development will be seen in the next 10 years.”
Together with Astronergy Development Group who will maintain a 40 percent stake and whose key personnel have more than 20 years of experience in solar energy, TUG said its entry into ADGI will provide a new steady income stream and, necessarily, increase shareholder value.
Source: Manila Bulletin