Philippines: GBP acquiring 50% of Alsons unit for P4.25B

Philippines: GBP acquiring 50% of Alsons unit for P4.25B

ALCANTARA-LED power company Alsons Consolidated Resources, Inc. (ACR) said
that Global Business Power Corp. (GBP), a leading power producer in the
Visayas and an associate of Metro Pacific Investments Corporation (MPIC), is
acquiring 50 percent of its unit Alsons Thermal Energy Corp. (ATEC).

ACR said in a disclosure to the Philippine Stock Exchange (PSE) that the two
companies signed on June 3 an agreement which gives GBP a 50 percent stake
in ATEC, the holding company for ACR's baseload coal-fired power plant
assets, ACR said in disclosure to the local bourse.

Based on the details of the deal, GBP is acquiring 14.95 million shares of
stock in ATEC as well as shareholder advances. The base purchase price is
P4.25 billion, subject to adjustment on closing.

The completion of the transaction is subject to the satisfaction of certain
conditions precedent, including the approval of the Philippine Competition
Commission (PCC). GBP will fund the acquisition through internal sources and
external bank debt.

ATEC owns a 75 percent stake in the 210-megawatt (MW) Sarangani Energy Corp.
(SEC) baseload coal-fired plant in Maasim, Sarangani Province.

ACR's long-time Japanese partner Toyota Tsusho Corporation (TTC) will still
hold a 25 percent equity in SEC. ATEC will also assume ACR's stake in San
Ramon Power, Inc. (SRPI), which is developing a 105-MW baseload coal-fired
plant in Zamboanga City.

"We believe that this partnership will greatly benefit power consumers,
particularly in light of the planned interconnection of the Mindanao and
Visayas grids which we strongly support," ACR chairman and president Tomas
I. Alcantara said over the weekend.

"We look forward to a fruitful partnership that combines GBP's technical
competencies and strengths in the Visayas with ACR's long years of
experience in Mindanao as the island's first independent power producer,"
Alcantara said.

MPIC and GBP Chairman Manuel V. Pangilinan stated that this strategic
acquisition is in line with MPIC's commitment to further bolster its
infrastructure investments in all parts of the Philippines.

"The new partnership with Alsons presents a significant milestone for us,
thru GBP, to enter the fast-growing and dynamic Mindanao market given
Alsons' proven, long-standing and successful track record in owning and
operating power plants in Mindanao," Pangilinan said.

For his part, GBP President Jaime Azurin said, "GBP was established out of
the need for adequate, reliable and cost-efficient power supply in the
Visayas. Now that the region's baseload power requirements have been
secured, we are delighted to have another opportunity to be of service to
emerging markets like Mindanao and help drive the nation forward through our
new partners."

ING Bank N.V. acted as ACR's sole financial advisor for the transaction
while the law firm of Castillo Laman Tan Pantaleon & San Jose served as
ACR's legal advisor.

GBP is 56 percent owned by Beacon Electric Asset Holdings, Inc. (BEAHI)
through Beacon PowerGen Holdings, Inc. BEAHI is a joint venture between MPIC
and PLDT Communications and Energy Ventures, Inc. (PCEV), with MPIC holding
a 50 percent voting interest in BEAHI.

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Link to Original Article:
http://www.manilatimes.net/gbp-acquiring-50-alsons-unit-p4-25b/331241/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com