SMC Global Power to fully acquire Masinloc power plant

SMC Global Power Holdings Corp. (SMCGPH) on Monday said it has secured a $1.9-billion share purchase agreement to buy out the 630-megawatt Masinloc power plant in Zambales.

In an emailed statement, the power unit of San Miguel Corp. (SMC) said it acquired 100 percent of Masin-AES Pte. Ltd., the operator of the Masinloc powerplant, from AES Philippines Investment Pte. Ltd., and Gen Plus B.V.

"SMCGPH, the holding company for San Miguel Corporation's investments in the power industry, bought the equity stakes of both AES (51 percent) and EGCO Group (49 percent) in Masin-AES Pte. Ltd.," it said.

Constructed in 1998, the Masinloc plant uses coal from a variety of sources in the Pacific Rim. It consists of two 300-megawatt units, each with an identical re-circulation boiler.

To acquire the power plant, SMCGPH outbid other prospective investors such as the Aboitiz Group and Pangilinan-led Manila Electric Company (Meralco).

"We are happy to be able to acquire Masinloc. The additional power assets provide us an opportunity to increase our footprint in clean coal technology that provides reliable and affordable power, particularly in Luzon," SMC President and COO Ramon Ang said.

"In fact, we have substantially reduced emissions even from our existing power plants to continue promoting the economy's growth and produce energy in an environmentally responsible way," he added.

SMC noted, however, that the completion of the agreement is still subject to the approval of the Philippine Competition Commission (PCC), which is mandated by law to review all business deals worth P1 billion and above. —Jon Viktor Cabuenas/KBK, GMA News