Ayala-MPIC, Lopez team up for Angat

MANILA, Philippines - The Ayala Group and Metro Pacific Investments Corp. (MPIC) have formed an alliance with the Lopez family to bid for the 246-megawatt Angat hydroelectric power plant in Norzagaray, Bulacan.

In separate disclosures to the Philippine Stock Exchange, Ayala Corp. and MPIC said they acquired a 33.33-percent stake each in First Gen Northern Energy Corp. (FGNEC), which will be used as the corporate vehicle to bid for the Angat plant. The remaining 33.33 percent will be held by First Gen Corp., the power generation arm of the Lopezes.

Ayala and MPIC said they acquired 250,000 common shares each of FGNEC for P250,000. Both have fully paid for their subscriptions.

In view of this development, Michigan Power Inc., the company earlier formed by the Ayala-MPIC group, withdrew yesterday its participation from the bidding to give way to the Lopez family’s entry.

The Angat hydropower plant began commercial operation in July 1967. It has four main facilities with a combined capacity of 200 MW, as well as five auxiliary units which have combined capacity of 46 MW.

The Ayala Group has a portfolio of diverse business interests including investments in banking, real estate, telecommunications, information technology, water infrastructure and management, and business process outsourcing. It also has interests in electronics manufacture and car dealership.

MPIC, which is now in telecommunications, healthcare, toll roads, water utility and most recently, electricity distribution, continues to scout opportunities to further beef up its investment portfolio.

A decade after Hong Kong-based parent firm First Pacific Co. took over the country’s most valuable company, Philippine Long Distance Telephone Co. (PLDT), the group has acquired a majority stake in the nation’s largest power retailer, Manila Electric Co. (Meralco).

On the other hand, First Gen is the leading clean and renewable energy company in the Philippines with an installed capacity of 2,887.4 MW. It accounts for approximately 19 percent of total installed capacity in the country today.

The local businesss landscape is being re-shaped by how conglomerates are beefing up their own portfolios through aggressive expansions and diversification and partnerships with strategic investors.

Among the other groups that have signified interest to bid for the Angat power facility include the Aboitiz family’s SN Aboitiz Power and diversifying conglomerate San Miguel Corp.