The group of taipan George Ty has taken in Japanese financial group Orix Corp. as a strategic investor in power generation unit Global Business Power Corp., one of the largest independent power producers in the Visayas.
First Metro Investment Corp., the investment banking unit of Ty-led Metropolitan Bank and Trust Co., sold a 20-percent stake in GBPC to Orix for P7.15 billion.
This expands the group’s business relationship with Orix, which is an existing partner in the Ty group’s real estate and leasing businesses.
The sale to Orix is part of the Metrobank group’s preparations for the implementation of tighter capital adequacy requirements under the Basel 3 framework.
This deal trims the Metrobank group’s stake in GBPC (through FMIC) to 29.11 percent while parent conglomerate GT Capital Holdings maintains a majority interest of 50.89 percent.
“The signing of the agreement represents a significant step in pursuing Global Business Power’s strategy. We believe that Orix will provide the company with a strong, well-financed strategic partner that will contribute to its future growth,” FMIC chairman Francisco Sebastian said in a disclosure to the Philippine Stock Exchange.
GBPC currently owns and operates nine power plants in Toledo City, Cebu and Iloilo City, Panay Island with a total installed capacity of 627 megawatts. It originally had a mainly bunker fuel-fired generation capacity of 230 MW but later expanded with the construction of a 410-MW generation plant using clean coal-fired technology. The expanded plants started commercial operations in 2011.
Orix is a leading integrated financial services group that provides products and services to corporate and retail customers in Japan and other countries.
The Japanese group is expanding into energy-related businesses that include energy saving service business, electric power trading and power generation using renewable energy such as solar, geothermal and wood chip biomass.