First Metro Investment Corp. (First Metro) has completed the sale of its 20 percent stake in Global Business Power Corp. to Meralco PowerGen Corp. (MGen).
MGen SVP for commercial development Angelito U. Lantin said via text message that the parties signed on Tuesday the shareholders’ agreement (SHA) to complete the transaction, which was valued at P7.15 billion.
The other signatories were GT Capital Holdings Inc. (GT Capital), ORIX Corp. of Japan (ORIX) and Global Power.
MGen is a wholly owned subsidiary and the power generation arm of Meralco, while First Metro is the investment banking subsidiary of the Metropolitan Bank and Trust Company (Metrobank). The sale comes after the recently concluded purchase by ORIX of 20 percent of Global Power on June 27, 2013.
“We are privileged to have Meralco as a strategic partner,” Global Power chair Francisco C. Sebastian said in a statement.
“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 in the Visayas and Mindanao,” MGen President Oscar S. Reyes said.
Early this year, MGen and Global Power signed a Memorandum of Understanding (MOU) to pursue selected power-generation projects in Mindanao.
The resulting ownership structure of Global Power will be as follows: First Metro with 9.11 percent, ORIX with 20 percent, MGen with 20 percent and GT Capital retaining its majority ownership at 50.89 percent.
GT Capital is the listed investment holding company of the Ty family, the component businesses of which include Global Power, Metrobank, Toyota Motor Philippines, Federal Land Inc., Philippine AXA Life Insurance Corp. and Charter Ping An Insurance Corp.
One of the largest independent power producers in the Visayas, Global Power owns and operates nine power plants with a total installed capacity of 627 megawatts.