AEV sells 25% stake in AboitizPower to Japan’s largest power generatorAEV brokered a deal to take on Jera as a “strategic investor”; that’s where a larger company (usually in the same industry) takes a stake in a smaller company for reasons that go beyond simple trading profits. The deal between Aboitiz Equity Ventures [AEV 53.10 2.12%] and Jera, a Japanese joint venture between TEPCO and Chubu Electric that is Japan’s largest power generator, saw Jera gain a 27% stake in AboitizPower [AP 34.20 4.75%] for approximately P80 billion. For AEV, the sale leaves it with about a 51.87% stake in AP, and a massive pile of cash that it can use to inject into any of its capital-intensive businesses. Either way, the deal prices AP’s marketcap at P300 billion, which is a 25% premium over the P240 billion that AP was worth before the announcement. Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock.

Source: Philippine Star September 28, 2021 00:33 UTC