MANILA, Philippines - The power generation arm of conglomerate GT Capital Holdings Inc. is ready for more expansion projects, with the potential to venture into Luzon for the first time.
The P7.15-billion buy-in of Pangilinan-led Meralco PowerGen Corp. allows Global Business Power Corp. (GBPC) to turn into a significant player in the power industry, GT Capital’s top official said.
“Hopefully, with a stronger partnership, with a stronger shareholder combination, we become a more solid player in the sector,†said GT Capital president Carmelo Maria Luza Bautista.
Last week, Meralco PowerGen, a subsidiary of power distribution giant anila Electric Co., bought a 20-percent stake in GBPC from First Metro Investment Corp. (FMIC) of the Metrobank Group.
While the expansion of GBPC depends on the approval of the new set of shareholders, Meralco PoweGen’s entry “opens a lot of doors,†Bautista said.
“Luzon is a bit crowded but at the same time the bulk of the requirements are there,†Bautista said.
GBPC is one of the largest independent power producers in the Visayas.
It currently owns and operates nine power plants, with a total installed capacity of 627 megawatts (MW).
“Visayas is at level but it’s the fastest growing and there are hardly new investments coming in,†Bautista said. In November, GBPC subsidiary Toledo Power Corp. broke ground for the 82-MW clean coal-fired power plant expansion project in Cebu.
With Meralco PowerGen’s entry, shareholders of GBPC are now composed of GT Capital (50.89 percent), Meralco PowerGen (20 percent), Orix Corp. of Japan (20 percent) and FMIC (9.11 percent).
Bautista said Metrobank raised P7.15 billion from the share sale, the same amount it generated when Orix bought 200 million GBPC shares in June.