Meralco unit acquires stake in Global Power for P7.15-B
MANILA, Philippines - A unit of Manila Electric Co. (Meralco) has sealed the deal to acquire a 20% stake in GT Capital's power generation arm Global Business Power Corp. for P7.15 billion.
In a statement, Meralco PowerGen Corp. (MGen) and First Metro Investment Corp. said they signed a shareholders' agreement to complete the sale of the former's stake in Global Power.
"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," Global Power chairman Francisco Sebastian said.
"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," MGen president Oscar Reyes said.
With the entry of MGen, the ownership structure of Global Power will now be First Metro with 9.11%, ORIX with 20%, MGen with 20% and GT Capital with majority ownership at 50.89%.
Global Power, one of the largest independent power producers in Visayas, currently owns and operates 9 power plants with total installed capacity of 627 megawatts.