The Market Monitor Minding the Nation's Business
Gokongwei group flagship JG Summit Holdings Inc. (JGSHI) has agreed to purchase 577.2 million shares of Global Business Power Corp. (GBPC) consisting of 423.3 million shares from GT Capital Holdings Inc. and 154 million shares from Manila Electric Co. generation unit PowerGen Corp to expand its exposure in the energy business.
JGS reported to the stock market that its board of directors approved acquisition of the GBPC shares on June 30.
The acquisition is expected to expand JGSHI participation in the power sector.
“GBPC is one of the leading independent power producers in the Visayas region and Mindoro island with a combined gross maximum capacity of 704 megawatts (MW) comprising 696.5 MW of power supplied to the Visayas grid and 7.5 MW of power supplied within Mindoro island,” JGS said in its disclosure to the stock exchange.
JGS also reported that the terms and conditions of the transaction specified that the number of shares to be acquired has percentage to the total outstanding shares of the company in the transaction at 30 percent and with price per share value of P20.47.
The enterprise value method is the principle followed in arriving at the amount in consideration for the transaction.
The consideration amount to be given in this acquisition accounts for less than 10 percent of JGSHI stockholders’ equity as of end-March 2016 according to the disclosure.
GT Capital in a separate disclosure to the Philippine Dealing System said it signed an agreement with Orix P & E Philippines (Orix) for the acquisition of 22 percent of the issued and outstanding capital stock of GBPC.
The share purchase is worth P8.6 billion or P20.47 per share, which was paid last June 30 representing 423,284,613 shares, which was sold on the same date to JG Summit.
GT Capital reported that the share purchase of Orix’s 22 percent stake in GBPC and its subsequent disposition to JG Summit was a “furtherance of Orix’ tag-along right to the sale by the GT Capital Group of its 56 percent stake in GBPC to Beacon PowerGen Holdings, Inc,, and are consistent with the GT Capital Group’s decision to continue its indirect participation in the power industry.”
Beacon PowerGen Holdings Inc., recently announced entering into a share purchase agreement with GT Capital Holdings to acquire an aggregate 56 percent of the ordinary and issued share capital of Global Power with total value of ₱22.06 billion, of which ₱11.03 billion is in cash on closing and the balance through a vendor financing facility.
Global Power is the leading power supplier in Visayas with an aggregate 852 MW of coal and diesel powered generating capacity at present (including 150 MW to commence operations later this year) and 670 MW for further expansion.
RIZA LOZADA