Ty’s group to increase stake in Mirant

By KARL LESTER M. YAP, BusinessWorld Reporter The Metrobank group of companies of George Ty will increase its stake in Mirant Global Philippines Inc., a joint venture company it owns with power producer Mirant Philippines. First Metro Investment Corp. (FMIC) confirmed it arranged the sale of Mirant Philippines’ 50% stake to a group of investors led by Global Business Holdings, Inc., a member of the Metrobank Group and the owner of a 39% share in Mirant Global. The other 11% is held by FMIC, also a member of the Metrobank Group. "It is still being arranged. It is still being done," said Francisco C. Sebastian, FMIC president, on the sidelines of FMIC’s annual stockholders meeting held on Thursday. Mr. Sebastian, however, declined to say how many shares Global Business Holdings is buying. He did not name either the other investors and refused to disclose how much the sale was worth. Mr. Sebastian said the Metrobank Group is increasing its stake in the company because it believes there is a strong potential for growth in the country’s energy sector. "We are looking at our investment powers in the long term," Mr. Sebastian said. Mirant Global, which operates plants in Cebu, Iloilo, Mindoro, Panay and Aklan, has a total output of over 200 megawatts (MW). Mirant Global operates the Toledo power coal- and diesel-fired plants in Cebu, the Panay Power diesel plant in Iloilo City and a Mindoro diesel plant. In the last two years, the joint venture company increased its power generation capacity by expanding the Panay Power plant and setting up smaller diesel plants to service the islands of Boracay and Kalibo. Atlanta-based Mirant Corp. earlier said it sold its 50% stake in Mirant Global. In its statement, Mirant said the sale is consistent with its strategy of focusing on assets of substantial scale. Mirant is the largest private producer of electricity in the Philippines, with over 2,000 megawatts of generating capacity. Mirant Global does not include Mirant Corp.’s interests in the Sual, Pagbilao and Ilijan power plants. Formed in 2003, Mirant Global represents less than 5% of Mirant Corp.’s total capacity in the Philippines. Reports earlier said the Atlanta unit is considering divesting some of its assets, in particular its profitable Asia-Pacific operations. The firm recently emerged from bankruptcy, and analysts say they may sell their offshore assets to consolidate their finances. Meanwhile, FMIC also reported its net income last year dipped to P718.31 million from P1.015 billion in 2004. It was mostly due to a rapid rise in interest payments which ballooned by nearly six times to P1.12 billion from P186.3 million.- Report from BusinessWorld