Metro Pacific Investments, GT Capital form strategic alliance

Metro Pacific Investments Corp. (MPIC) announced on Friday that it has partnered with GT capital Holdings inc. (GT Cap) for capital expansion and strengthening of investments in infrastructure.

"I am delighted to announce this new alliance with the GT Capital Group. This investment has strengthened MPIC's finances and together we will work to accelerate our investment in, and development of, the infrastructure of our country," Manuel V. Pangilinan, chairman of MPIC, said during the company's stockholders' meeting in Makati City.

The transaction allows GT Cap to acquire 3.6 billion of MPIC's ordinary common shares at P6.10 a piece for a total cash consideration of P21.96 billion.

The company noted, "This will be received by MPIC as a deposit for share subscription while the company increases its authorized share capital pursuant to shareholders approvals received in 2015."

GT Cap would hold 11.4 percent of the enlarged common share capital base of MPIC.

Moreover, GT Cap will acquire further 1.3 billion shares from Metro Pacific Holdings Inc. (MPHI), the majority shareholder of MPIC.

This would then increase GT Cap's overall holding in the common share capital of MPIC to 15.6 percent.

Immediately prior to the issue of new common shares by MPIC as described above, MPHI has subscribed to 4.1 billion newly issued Class A voting preferred shares of MPIC at par value for a total consideration of P41.3 million.

Following all these transactions MPHI maintains an overall majority of the share capital of MPIC, with a 55 percent voting interest.

Jose Ma. K. Lim, MPIC President and CEO, said, “I would add to Manny's welcome of the alliance with GT Capital. I feel this will bring strength and investment enhancement to MPIC," said Jose Ma. K. Lim, president and CEO of MPIC. With the alliance with MPIC, Lim said GT Cap will be entitled to have three seats in its board of directors.

"Because we are plenty of independent (directors), they will co-appoint an independent with us," Lim added.

In a statement, GT Cap vice chairman Alfred V. Ty said, "We are very pleased to announce GT Capital's partnership with MPIC, the largest utilities and infrastructure conglomerate in the country."

"With this investment, GT Capital now becomes the strategic investor of MPIC, a dynamic growth company embedded in the most critical sectors of power, water, toll roads, railways and healthcare," he said.

"This is a significant milestone for GT Capital since it expands and strengthens our core sector coverage with an Infrastructure platform ensuring sustainable growth," he added.

Investment in Global Power

To deepen its participation in the power sector, MPIC also announced its associate Beacon Electric Asset Holdings Inc. has entered into a share purchase agreement with GT Capital Holdings Inc. to acquire 56 percent stake in Global Business Power Corp.(GBPC) for an aggregate consideration of P22.06 billion.

On the sidelines of the company's stockholders' meeting, Pangilinan said the acquisition of stakes in GBPC will give MPIC investment opportunity in Visayas and Mindanao.

MPIC noted, GBPC  is the leading power supplier in Visayas with an aggregate 852 MW of coal and diesel powered generating capacity at present and 670MW for further expansion.

"The investment in GBPC is part our drive to accelerate the pace of overall participation in the power sector while allowing Meralco to focus on servicing its Luzon customers," Pangilinan noted.

Pangilinan, chair of MPIC and also the president and CEO of Philippine Long Distance Telephone Co. (PLDT) said, "We will use the cash from the stocks sale to GT Cap to acquire more Meralco shares from PLDT."

He explained that PLDT's shares in Meralco has already "rippened" and thinks that it is about time to consider selling it.

Pangilanan noted that the telephone giant's investment in Meralco begun in 2009.

"We are optimistic the agreement will be forged with PLDT soon," he added. — VVP, GMA News

[apologies for the error Metro Pacific Investments Corp. po not Inc.]