JG Summit Holdings, Inc. is set to acquire a 30-percent stake in Global Business Power Corp. (GBPC), a move that the conglomerate hopes will enlarge its presence in the power sector.
In a disclosure to the Philippine Stock Exchange, the Gokongwei-led conglomerate on Friday said that it will buy 577.21 million shares GBPC at P20.47 apiece or a total of P11.815 billion, based on the enterprise value of the investment.
Of the shares to be acquired, 423.28 million shares will be purchased from GT Capital Holdings Inc., representing a 22 percent stake, while the remaining 153.92 million shares equivalent to an 8 percent stake will be bought from Meralco PowerGen Corp. (MGen).
“The acquisition is expected to expand and further strengthen JGSHI’s presence in the power sector,” the holding firm told the PSE.
In addition to its 27.1 percent stake in Meralco, JG Summit has a biomass plant in Negros Occidental and a coal-fired plant in Batangas City.
With the deal in place, Global Business Power would be majority-owned by Beacon Electric Assets Holdings Inc. of the infrastructure conglomerate Metro Pacific Investment Corp. (MPIC) with a 56 percent interest, followed by JG Summit Holdings with 30 percent, and Meralco with 14 percent interest.
Global Business Power is one of the leading independent power producers in the Visayas region and Mindoro Island with a combined gross maximum capacity of 704 megawatts (MW), comprising 696.5 MW of power supplied to the Visayas grid and 7.5 MW of power supplied within Mindoro.
In separate disclosures, GT Capital said it bought a 22 percent stake in GBPC from Orix P&E Philippines Corp. and conversely sold it to JG Summit for P8.6 billion in cash.
This means MGen sold an 8 percent interest for P3.22 billion. Manila Electric Company had owned a 22 percent stake in GBPC before selling 8 percent of GBPC to JG Summit.
“The transaction is in line with the Tag-Along right of Orix and the GT Capital Group’s decision to continue its indirect participation in the power industry,” GT Capital told the local bourse.
The “Tag-Along Right” is in line with the recent sale by GT Capital of its 56 percent stake in GBPC to Beacon PowerGen Holdings Inc., a subsidiary of Metro Pacific Investments Corporation and PLDT, for P22.1 billion.
As part of the deal GT Capital also acquired 15.6 percent of MPIC in a transaction worth P29.89 billion. This enables GT Capital to keep an indirect stake in GBPC through MPIC’s interests in Beacon and Meralco.
MPIC chairman Manuel Pangilinan said MPIC’s acquisition of a 56 percent stake in Global Business Power would give the company the opportunity to invest in power generation in the Visayas and Mindanao.