The power generation unit of the country’s largest power distributor, Manila Electric Co. (Meralco), has completed the purchase of a 20-percent stake in Global Business Power Corp. (GBPC) for P7.15 billion.
In separate disclosures, First Metro Investment Corp. and Meralco PowerGen Corp. (MGen) announced that they have signed a shareholders’ agreement to complete the sale of First Metro’s 20-percent stake in GBPC to MGen.
The sale comes after the recently concluded purchase by ORIX Corp. of Japan (ORIX) of 20 percent of GBPC in June.
The agreement was signed together with GT Capital Holdings Inc., ORIX and GBPC.
MGen is a wholly owned subsidiary and is the power generation arm of Meralco, while First Metro is the investment banking subsidiary of the Metropolitan Bank and Trust Co. (Metrobank), the banking arm of George Ty-led GT Capital.
The resulting ownership structure of GBPC will be as follows, First Metro with 9.11 percent, ORIX with 20 percent, MGen with 20 percent and GT Capital retaining its majority ownership at 50.89 percent.
“We are privileged to have Meralco as a strategic partner, not just for its heft and financial muscle, but for our shared vision of empowering the economic progress of our country and the uplifting, through light and power, of the lives of our countrymen,” GBPC Chairman Francisco Sebastian said.
For his part, MGen President Oscar Reyes said the completion of the deal seals a strategic alliance that will combine the resources and expertise of both MGen and GBPC to respond to the growing need of ensuring a stable supply of reliable and cost-competitive power for the country, particularly in the Visayas and Mindanao.
Early this year, MGen and GBPC signed a memorandum of understanding (MOU) to pursue selected power generation projects in Mindanao.
GBPC, being one of the largest independent power producers in the Visayas, currently owns and operates nine power plants with a total installed capacity of 627 megawatts (MW).
The power firm has two expansion projects that are on stream: an 82-MW plant in Toledo City; and a 150-MW expansion in Panay.
MGen, on the other hand, plans to develop a diversified power portfolio of up to 2,700 MW from now until 2020, as part of an overall strategy to ensure that power generation for the Luzon Grid, particularly the Meralco franchise area, is sustainable, efficient and highly cost competitive for the benefit of its customers.