The Market Monitor Minding the Nation's Business
By Riza Lozada
Property-based Metro Pacific Investments Corp. (MPIC) and the Ty family’s GT Capital Holdings Inc (GT Capital) entered into an investment deal worth P22 billion that will raise GT Capital’s stake in MPIC.
In a report to the bourse, MPIC announced the placement of 3.6 billion new MPIC common shares in GT Capital worth P21.96 billion, which, upon completion, will increase GT Capital’s stake to 11.4 percent in MPIC.
MPIC reported that GT Capital paid a subscription price of P6.10 each as “deposit for share subscription while MPIC increases its Authorized Share Capital, pursuant to shareholder approvals received in 2015.”
The MPIC said GT Capital will acquire another 1.3 billion shares from Metro Pacific Holdings Inc (MPHI), MPIC parent company, which would then increase GT Capital’s stake in MPIC to 15.6 percent.
Prior to the MPIC issuance of common shares, MPHI has subscribed to 4.1 billion newly issued Class A voting preferred shares of MPIC at par value for a total consideration of P41.3 million.
Following all these transactions MPHI continues to hold an overall majority of the share capital of MPIC, with a 55 percent voting interest.
MPIC said its affiliate Beacon Electric Asset Holdings Inc. (Beacon Electric) through unit Beacon PowerGen Holdings Inc., has entered into a share-purchase agreement with GT Capital to acquire 56 percent of the ordinary and issued share capital of Global Business Power Corp. for P22 billion with agreement to settle P11.03 billion in cash on closing and the balance via a vendor financing facility in the form of a long-term bank debt.
Global Power provides the Visayas with an aggregate 852 megawatts (MW) of coal and diesel generating capacity at present and 670 MW for expansion. The main development project is a 670-MW super critical coal fired plant in La Union, Pangasinan.
MPIC Chairman Manuel V. Pangilinan said the investment of GT Capital has strengthened MPIC’s finances and projected to accelerate development of infra-structure in the country.
GT Capital Vice Chairman Alfred V. Ty said that, with this investment, GT Capital now becomes the strategic investor of MPIC, a dynamic growth company embedded in the most critical sectors of power, water, toll roads, railways and healthcare.
“We are delighted to be part of a prestigious group, and to be able to explore together the country’s growth potential. The GT Capital-MPIC business partnership creates opportunities for synergies.
We are excited with the possibilities arising from this alliance,” GT Capital Vice Chairman Francisco C. Sebastian said. “I would add to Manny’s welcome of the alliance with GT Capital.
I feel this will bring strength and investment enhancement to MPIC,” said Jose Ma. K. Lim, MPIC president and CEO.