Meralco unit buys 20% of Global Business Power for P7.15-B

The power generating arm of Manila Electric Co. (Meralco) signed a deal to buy 20-percent equity in GT Capital's Global Business Power Corporation for P7.15 billion.

 

In a disclosure to the Philippine Stock Exchange, Meralco said Meralco PowerGen Corp. signed a shareholders' agreement with First Metro Investment Corporation, GT Capital Holdings Inc. and ORIX Corporation of Japan.

 

GT Capital is the listed investment holding company of the Ty family, with businesses that include Global Power, Metropolitan Bank and Trust Company (Metrobank), First Metro, Toyota Motor Philippines, Federal Land, Inc., Philippine AXA Life Insurance Corporation and Charter Ping An Insurance Corporation. 

 

With the entry of Meralco in Global Power, the equity structure will evolve into 9.11 percent for First Metro, 20 percent ORIX, 20 percent for Meralco PowerGen, and 50.89 percent for GT Capital which will keep its status as majority owner. 

 

"The completion of the deal seals a strategic alliance that will combine the resources and expertise of both MGen and Global Power to respond to the growing need of ensuring a stable supply of reliable and cost-competitive power for the country, particularly the Visayas and Mindanao," Meralco PowerGen president Oscar S. Reyes said in a statement.

 

Meralco's entry in Global Power "broadens and deepens its commitment in the power sector" even after 10 years of operations, chairman Francisco C. Sebastian noted in the same statement.

 

“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..." he said. 

 

Early this year, Meralco PowerGen and Global Power signed a memorandum of understanding to pursue selected power generation projects in Mindanao. 

 

Global Power is one of the largest independent power producers in the Visayas, owner and operator of nine power plants with a total installed capacity of 627 megawatts (MW) in Toledo City in Cebu and in Iloilo City in Panay Island.

 

Meralco PowerGen 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 power for the Luzon Grid, particularly the Meralco franchise area. – DOR/VS, GMA News