MGen takes full ownership of GBP

MPIC, JG summit divest 86% stake

MANILA, Philippines — Gokongwei-owned JG Summit Holdings Inc. and Pangilinan-led Metro Pacific Investments Corp. (MPIC) are consolidating their power sector investments under Manila Electric Co. (Meralco).

Under the plan, JG Summit and MPIC will transfer their respective shareholdings in Global Business Power Corp. to Meralco subsidiary Meralco PowerGen Corp. (MGen).

“MGen announced the signing of agreements with Beacon Powergen Holding Inc., a wholly owned subsidiary of MPIC and with JG Summit for the transfer of their respective shareholdings in Global Business Power to MGen for the purchase price of P22.4 billion and P12 billion, respectively,” Meralco said in a stock disclosure yesterday.

The purchase price shall be paid in installments or 60 percent at the close of the transaction which is expected in the first quarter of 2021, and 20 percent to be paid six months after and the remaining 20 percent will be paid after 18 months.

MPIC holds a 56 percent interest in Global Business Power while JG Summit holds a 30 percent interest. The remaining 14 percent is held by MGen.

In Meralco, MPIC holds a 45.46 percent stake while JGS holds a 29.56 percent interest.

As a result of the transaction, MGen will own 100 percent of Global Business Power, the leading power producer in the country outside Luzon with a capacity of 1,091 megawatts. MGen plans to build a portfolio of 3,000 MW in five years.

The newly combined MGen and Global Business Power will be able to respond to the needs of the country as the economy makes a strong rebound in 2021 especially with the COVID-19 vaccines, MPIC president and CEO Jose Ma. Lim.

JG Summit president and CEO Lance Gokongwei said combining MGen and Global Business Power under Meralco is the next step up for the two conglomerates.

“We are happy with how Global Business Power has performed since our investment in 2016. The challenge now is how to further grow the business and take it to the next level. I am confident that combining this under Meralco where JG Summit is also a significant shareholder is the best way to achieve synergies and create further value,” Gokongwei said.