MVP, Ty groups seal power deal
MANILA, Philippines – The groups of businessman Manuel Pangilinan and tycoon George Ty are joining forces as they beef up their investments in the power sector.
A top Manila Electric Company (Meralco) official told reporters a share purchase agreement was signed Monday night, October 7 between Pangilinan-led Meralco PowerGen Corporation and Ty-led First Metro Investment Corporation (FMIC).
Meralco PowerGen is a wholly-owned subsidiary of Meralco, the country's largest power distributor, which Pangilinan heads.
Betty Siy-Yap, Meralco chief financial officer, said “a share sale agreement to acquire a 20% stake" in FMIC subsidiary Global Business Power Corporation was signed.
Global Business Power is one of the big power producers in the country. It owns power plants in Visayas.
Both groups may pour in equal amounts of investments into the venture, said Meralco president Oscar Reyes. No other details were given.
Meralco and Global Business Power signed in January an agreement to pursue and evaluate potential power generation projects, especially in Mindanao, a region currently suffering from power shortage.
"Meralco is trying to help address the requirement for adequate reliable power. So if we can help in meeting the needs with very fuel efficient new technology plants and with credible partners then we can contribute our own expertise, resources,” Meralco said, noting this could be Meralco PowerGen’s first project outside Luzon.
“Meralco PowerGen continues to explore opportunities with the goal of putting up power plants to help address the need for a reliable, sustainable and competitively-priced supply of power,” the utility firm earlier said.
Global Business Power has a total capacity of 633 megawatts in Visayas and is looking at opportunities in Mindanao.
Meralco PowerGen has taken a majority stake in Redondo Peninsula Energy Inc., which is developing a 600-megawatt coal project in Subic. It is eyeing to build a diversified power portfolio of up to 2,500 megawatts from now until 2020. – Rappler.com
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