EDC buys out Aussie partner in Chile, Peru projects


Posted at Nov 18 2013 02:57 PM | Updated as of Nov 18 2013 10:57 PM

MANILA, Philippines - Geothermal energy producer Energy Development Corp. has bought out its Australian partner from two geothermal projects in Chile and Peru.

In a disclosure to the Philippine Stock Exchange, EDC said its subsidiary EDC Hong Kong sealed the share sale agreement with a subsidiary of Hot Rock Limited last Saturday (November 16).

Under the deal, EDC HK will acquire all of Hot Rock's shares in Hot Rock Peru and Hot Rock Chile.

Hot Rock, in separate statement, said both parties have agreed to a sale price of $3 million. A deposit of $500,000 of the purchase price is payable by EDC within five business days of execution of the contract.

EDC will acquire all of the geothermal authorization and application interests (including Hot Rock's 30% interest in the Quellaapacheta joint venture oroject) and other assets held by Hot Rock Peru S.A in Peru except for the Chocopata Project; and all of the geothermal concession and application interests and other assets held by Hot Rock Chile S.A and Hemisferio Sur SpA, in Chile except for the Longavi and Calerias Projects.

EDC earlier reported a 24.7% drop in its consolidated net income for the first nine months of 2013. Its income slid to P5.3 billion from January to September this year from P7.1 billion posted in the same period in 2012.

EDC attributed the lower net income to the losses incurred from the volatility in the peso-dollar exchange rate.