ALCANTARA-LED power company Alsons Consolidated Resources, Inc. (ACR) said that Global Business Power Corp. (GBP), a leading power producer in the Visayas and an associate of Metro Pacific Investments Corporation (MPIC), is acquiring 50 percent of its unit Alsons Thermal Energy Corp. (ATEC).
ACR said in a disclosure to the Philippine Stock Exchange (PSE) that the two companies signed on June 3 an agreement which gives GBP a 50 percent stake in ATEC, the holding company for ACR’s baseload coal-fired power plant assets, ACR said in disclosure to the local bourse.
Based on the details of the deal, GBP is acquiring 14.95 million shares of stock in ATEC as well as shareholder advances. The base purchase price is P4.25 billion, subject to adjustment on closing.
The completion of the transaction is subject to the satisfaction of certain conditions precedent, including the approval of the Philippine Competition Commission (PCC). GBP will fund the acquisition through internal sources and external bank debt.
ATEC owns a 75 percent stake in the 210-megawatt (MW) Sarangani Energy Corp. (SEC) baseload coal-fired plant in Maasim, Sarangani Province.
ACR’s long-time Japanese partner Toyota Tsusho Corporation (TTC) will still hold a 25 percent equity in SEC. ATEC will also assume ACR’s stake in San Ramon Power, Inc. (SRPI), which is developing a 105-MW baseload coal-fired plant in Zamboanga City.
“We believe that this partnership will greatly benefit power consumers, particularly in light of the planned interconnection of the Mindanao and Visayas grids which we strongly support,” ACR chairman and president Tomas I. Alcantara said over the weekend.
“We look forward to a fruitful partnership that combines GBP’s technical competencies and strengths in the Visayas with ACR’s long years of experience in Mindanao as the island’s first independent power producer,” Alcantara said.
MPIC and GBP Chairman Manuel V. Pangilinan stated that this strategic acquisition is in line with MPIC’s commitment to further bolster its infrastructure investments in all parts of the Philippines.
“The new partnership with Alsons presents a significant milestone for us, thru GBP, to enter the fast-growing and dynamic Mindanao market given Alsons’ proven, long-standing and successful track record in owning and operating power plants in Mindanao,” Pangilinan said.
For his part, GBP President Jaime Azurin said, “GBP was established out of the need for adequate, reliable and cost-efficient power supply in the Visayas. Now that the region’s baseload power requirements have been secured, we are delighted to have another opportunity to be of service to emerging markets like Mindanao and help drive the nation forward through our new partners.”
ING Bank N.V. acted as ACR’s sole financial advisor for the transaction while the law firm of Castillo Laman Tan Pantaleon & San Jose served as ACR’s legal advisor.
GBP is 56 percent owned by Beacon Electric Asset Holdings, Inc. (BEAHI) through Beacon PowerGen Holdings, Inc. BEAHI is a joint venture between MPIC and PLDT Communications and Energy Ventures, Inc. (PCEV), with MPIC holding a 50 percent voting interest in BEAHI.