JG Summit Holdings Inc. of the Gokongwei Group agreed to take a 30-percent stake in Global Business Power Corp. from GT Capital Holdings Inc. and Meralco Power Gen Corp. for P11.8 billion.
JG Summit, in a disclosure to the Philippine Stock Exchange Friday, said it purchased 577,206,290 shares of Global Business Power consisting of 423,284,613 shares from GT Capital Holdings Inc. and 153,921,677 shares from Meralco PowerGen Corp.
GT Capital, in a separate disclosure, said it signed an agreement to sell a 22-percent stake in Global Business Power to JG Summit for P8.6 billion.
GT Capital said the deal followed its acquisition of the 22-percent stake of Orix P & E Philippines Corp. in Global Business Power.
“The transaction is in line with the Tag-Along Right of Orix and the GT Capital Group’s decision to continue its indirect participation in the power industry,” GT Capital said.
JG Summit said the purchase would “expand JGSHI’s participation in the power sector.” JG Summit has plans to build a coal-fired power plant in Batangas.
JG Summit acquired Global Business Power’s shares at a value of P20.47 apiece
“The purchase price was based on an agreed valuation of GBPC as confirmed by an independent third party valuator,” GT Capital said.
Global Business Power is one of the power producers in Visayas and Mindoro island with a combined capacity of 704 MW, comprising 696.5 MW supplied to the Visayas grid and 7.5 MW within Mindoro island.
GT Capital is a conglomerate controlled by businessman George Ty, while Meralco PowerGen is a unit of Manila Electric Co.
Meralco PowerGen, meanwhile, sold its 8 percent stake in Global Business Power, leaving the company with a 14-percent equity from its original 22-percent shareholdings.
First Pacific Co. Ltd.’s associate, Beacon Electric Asset Holdings Inc., through wholly-owned subsidiary Beacon PowerGen Holdings Inc., earlier acquired 56 percent of Global Business Power for P22.6 billion in May. Beacon Electric, meanwhile, owns a 35 percent stake in Meralco.
First Pacific and JG Summnit are partners in Philippine Long distance Telephone Co., the biggest telecommunications company in the Philippines.
Global Business Power is building a 670-MW power plant through subsidiary Global Business Power in Luzon.
Global Business has signed a power sales agreement with Meralco for 600 MW of supply from the planned La Union power plant.
Global Business Power also has an ongoing 150-MW expansion project in Barangay Ingore, Lapaz, Iloilo City through subsidiary Panay Energy Development Corp. The expansion project is expected to be in commercial operations by August.
Panay Energy owns and operates an existing 164-MW coal power plant in the same area.