Meralco acquires stake in Ty-led Global Power
MANILA, Philippines - Two of the country's biggest business groups have finalized their strategic partnership in the power sector.
Tycoon George Ty sold 20% of his group's investment arm First Metro Investment Corporation in Global Business Power Corporation, one of the biggest and most aggressive player in the country's energy sector, to the group of businessman Manuel Pangilinan.
Meralco PowerGen Corporation (MGen), a wholly-owned unit of Pangilinan-led power distributor Manila Electric Co. (Meralco), acquired the minority stake in Global Power for P7.15 billion, according to an October 23 statement of Ty-led investment holding firm GT Capital Holdings.
This transaction comes after Orix Corporation of Japan acquired another 20% block in Global Power in June also for P7.15 billion.
After these, Global Power's ownership structure will be:
- 50.89% - GT Capital Holdings (Ty group's investment holding firm)
- 20% - Japanese firm Orix Corporation
- 20% - MGen of Meralco
- 9.11% - First Metro (Ty group)
"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,” said MGen President Oscar S. Reyes in the statement.
Early this 2013, MGen and Global Power signed a Memorandum of Understanding to pursue selected power generation projects in Mindanao.
"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," said Global Power Chairman Francisco C. Sebastian.
Global Power is one of the largest independent power producers in the Visayas, operating 9 power plants with a total installed capacity of 627 megawatts (MW). Its main power plants are in Toledo City in Cebu and in Iloilo City in Panay Island, supplying power to private utility companies such as Visayan Electric Company and Panay Electric Company.
Two expansion projects are on stream: an 82 megawatt plant in Toledo City and a 150 megawatt expansion in Panay.
MGen plans to develop a diversified power portfolio of up to 2,700-megawatts (MW) from now until 2020 as part of an overall strategy to ensure that power generation for the Luzon Grid, particularly the Meralco franchise area, is sustainable, efficient and highly cost competitive. - Rappler.com