Meralco PowerGen Corporation (MGen), a wholly-owned generation subsidiary of Manila Electric Company, has signed agreements with JG Summit Holdings (JGS) and Metro Pacific Investments Corporation (MPIC) to acquire 86-per cent stake in Global Business Power Corporation (GBP).
JGS holds a 30-per cent ownership interest in GBP while MPIC, through a subsidiary, holds a 56-per cent interest. MGen currently owns the remaining 14 per cent. As a result of the transaction, MGen will own 100 per cent of GBP, according to the announcement.
The transaction is part of the two conglomerate groups’ direction to consolidate their power sector investments into a single vehicle.
GBP is the leading power producer outside Luzon with a gross capacity of 1,091 MW. The company has assets in the Visayas and Mindanao. The transfer is expected to deliver scale and operational synergy to both GBP and MGen.
“We are happy with how GBP has performed since our investment in 2016. The challenge now is how to further grow the business and take it to the next level. I am confident that combining this under Meralco where JG Summit is also a significant shareholder is the best way to achieve synergies and create further value”, said JGS President and CEO Lance Gokongwei.
This combination is a strategic one for MPIC as it presents opportunities in terms of promoting scale and operational efficiency while at the same time streamlining capital for MPIC’s other growth areas, according to MPIC President and CEO Jose Ma K Lim.
“The combined group will be in a strong position to respond to the needs of the country as the economy makes a strong rebound in 2021, with the now brighter prospect of available vaccines against the COVID-19”, Lim said.
“With GBP’s operational experience of successfully running its own portfolio of generation assets, coupled with MGen’s own record of managing the first supercritical generation plant in the country, MGen will be better placed to focus on its plan to build its own generation portfolio, including an ambition to own at least 1 GW in renewable energy capacity in five years”, said Meralco President Atty. Ray C. Espinosa. – CebuNews.ph