MGen poised to take full control of Vis-Min power producer

Meralco PowerGen Corp. (MGen) signed agreements with a firm under the Manuel Pangilinan-led group as well as JG Summit to fully own Global Business Power Corp. (GBP), for a combined transaction worth about P34.4 billion.

MGen is the power generation subsidiary of distribution giant Manila Electric Co., which is 45-percent owned by Metro Pacific Investments Corp. (MPIC) and 30 percent owned by JG Summit.MGen signed an agreement to acquire for P22.4 billion the 56-percent stake in GBP of Beacon Powergen Holding Inc., itself a wholly owned subsidiary of MPIC.

Also, MGen signed a separate agreement to acquire for P12 billion the 30-percent interest of JG Summit in GBP.

Expected to close in the first quarter of 2021 if all conditions and regulatory requirements were met, these transactions will make GPB 100-percent owned by MGen.

Touted as the leading power producer outside Luzon, GBC has a portfolio of assets spread across Visayas and Mindanao with a total of 1,091 megawatts in power generation capacity.

“The (acquisitions are) 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,” parent firm Meralco said in a disclosure.The purchase price is intended to be paid in installments—60 percent upon closing, 20 percent six months after that, and the remaining 20 percent after 18 months.

So far MGen’s portfolio is anchored by the 500-megawatt San Buenaventura coal-fired power complex which is already operating in Quezon province.

MGen is also developing a 1,200-MW coal-fired facility, also in Quezon, through subsidiary Atimonan One Energy Inc.

Another subsidiary, Powersource First Bulacan Solar Inc., is building a 50-MW solar farm in San Miguel town. —RONNEL W. DOMINGO INQ