By Maria Romero | The Daily Tribune
The group of businessman Manuel V. Pangilinan, through Meralco PowerGen Corporation (MGEN), fully acquires tycoon George Ty’s power company, Global Business Power Corporation (GBP), for P34 billion.
In a disclosure on Wednesday, Meralco PowerGen, a subsidiary of power distributor Meralco, said Beacon Powergen Holding Inc. (BEAHI), a subsidiary of Metro Pacific Investments Corp. (MPIC) and with JG Summit Holdings Inc., sold 86 percent of their combined share in GBP.
“(The sale price will) be paid in installments based on the following schedule: 60 percent shall be paid at closing, 20 percent will be paid six months after and the remaining 20 percent will be paid after 18 months,” MGEN said.
The sale price will be paid in installments based on the following schedule: 60 percent shall be paid at closing, 20 percent will be paid six months after and the remaining 20 percent will be paid after 18 months.
The transfer is expected to deliver scale and operational synergy to both GBP and MGEN and further enable these companies to provide ample and reliable supply of power to distribution utilities, electric cooperatives and other customers at competitive rates.
Customary conditions
“The transaction is subject to customary closing conditions, including regulatory and third-party approvals, and is expected to close within the first quarter of 2021, barring any unforeseen circumstances,” MGEN said.
BEAHI holds a 56 percent ownership interest in GBP while JG Summit holds a 30 percent interest. While MGEN currently owns the remaining 14 percent.
GBP is the leading power producer outside Luzon with a gross capacity of 1,091 megawatts, with assets in the Visayas and Mindanao.
MPIC has an effective 45.46 percent ownership in Meralco while JG Summit has a 29.56 percent stake.
AlphaPrimus Advisors acted as financial advisor to Meralco and MGEN with Picazo Law as its legal advisor.