Meralco disclosed on December 28, 2020 the substantial acquisition of Global Business Power Corporation by Meralco Powergen Corporation. The disclosure was posted on the PSE Edge website as follows:
“MERALCO PowerGen Corp. (“MGEN”), a wholly-owned power generation subsidiary of Manila Electric Company (“Meralco”) entered into share purchase agreements with Beacon Powergen Holding Inc. (“BPHI”), a wholly owned subsidiary of Metro Pacific Investments Corporation (“MPIC”) and with JG Summit Holdings, Inc. (“JG Summit”) for the transfer of their respective shareholdings in Global Business Power Corporation (“GBP”) to MGEN for purchase price of PhP22,443,400,000.00 and PhP12,023,250,000.00 respectively. Said purchase price shall be paid in installments based on the following schedule: 60% shall be paid at closing, 20% will be paid 6 months after and the remaining 20% will be paid after 18 months.
BPHI holds a 56% ownership interest in GBP while JG Summit holds a 30% interest. MGEN currently owns the remaining 14%. As a result of the transaction, MGEN will own 100% of GBP.
GBP is the leading power producer outside Luzon with a gross capacity of 1,091 MW. The company has assets in the Visayas and Mindanao. The transfer is expected to deliver scale and operational synergy to both GBP and MGEN and futher enable these companies to provide ample and reliable supply of power to distribution utilities, electric cooperatives and other customers at competitive rates.
MPIC has an effective 45.46% ownership in Meralco while JG Summit has a 29.56% stake.
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.
AlphaPrimus Advisors acted as financial advisor to Meralco/MGEN with Picazo Law as its legal advisor.
For more information on GBP, please refer to attached audited financial statements.”
Source: https://edge.pse.com.ph/openDiscViewer.do?edge_no=c04f63bbb27f8cbc0de8473cebbd6407
