THE FIRST Pacific group has entered into a strategic alliance with the group of tycoon George Ty, gaining 56 percent control of the latter’ power generation unit Global Business Power, the leading power generation firm in the Visayas, for P22.06 billion.
But while the Tys’ GT Capital will cede majority control of Global Business Power to Beacon Electric Asset Holdings Inc. – a venture between First Pacific units Metro Pacific Investments Corp. (MPIC) and Philippine Long Distance Telephone Co.- it will enter as a strategic investor in MPIC by acquiring a 15.6 percent stake. This will make GT Capital the second largest shareholder of MPIC while Hong Kong-based First Pacific will retain a 55 percent stake.
During MPIC’s stockholders meeting on Friday, MPIC president Jose Ma. Lim said the company would sell 3.6 billion new shares to GT Capital at a price of P6.10 per share for a total consideration of P21.96 billion. This will give GT Capital an initial 11.4 percent of the enlarged MPIC stocks.
GT Capital will further acquire 1.3 billion MPIC shares from the First Pacific group, boosting its interest to 15.6 percent.
Prior to this deal, the First Pacific group through Metro Pacific Holdings Inc. subscribed to 4.1 million newly issued voting preferred shares of MPIC, allowing it to maintain a 55 percent voting interest after this deal with GT Capital.
These transactions are seen to result in an immediate lift to the earnings of MPIC and
Beacon Electric.
“This new partnership with GT Capital strengthens the cash position of First Pacific and at the
same time it strengthens MPIC’s capital base and its position as the leading infrastructure
company in the Philippines,” said First Pacific Managing Director and Chief Executive Officer
Manuel V. Pangilinan. “We intend to use the funds raised in the MPIC share sale to pay down
our borrowings.”
Global Business Power is the leading electricity generator in the Visayas region of the
Philippines with an aggregate capacity of 852 megawatts (MW) including a 150MW to come on stream later
in 2016 and a planned development of a 670MW super critical coal fired plant in La Union,
Pangasinan further ahead.
GT Capital is a major listed Philippine conglomerate with interests in market-leading businesses
across banking, property development, power generation, automotive assembly, importation,
wholesaling, dealership, and financing, and life and non-life insurance. GT Capital is the
primary vehicle for the holding and management of the diversified business interests of the Ty
family in the Philippines.