Diversified conglomerate JG Summit Holdings Inc is investing up to $251.4 million (P11.8 billion) in its 30 per cent shares acquisition of Global Business Power Corp (GBP), a unit of GT Capital Holdings Inc.
The Gokongwei-led firm disclosed the acquisition is expected to expand and further strengthen JG Summit’s presence in the power sector.
GBP is one of the leading independent power producers in the Visayas region and Mindoro island in the Philippines with a combined gross maximum capacity of 704 MW comprising 696.5 MW of power supplied to the Visayas grid and 7.5 MW of power supplied within Mindoro island.
JG Summit informed the local bourse that its board of directors approved on Thursday the purchase of 577,206,290 shares of GBP priced at P20.47 apiece, based on enterprise value.
A total of 423,284,613 of those shares were from GT Capital, while 153,921,677 shares were from MERALCO PowerGen Corporation, the power generation subsidiary of Manila Electric Co (Meralco).
Besides power distribution, JG Summit has interests in real estate, financial services, food and beverage, aviation, petrochemicals, and telecommunications.
Its top subsidiaries are JG Summit Petrochemical Corp, CP Air Holdings Inc, Universal Robina Corp, Robinsons Land Corp, and Robinsons Bank Corp. It also holds interest in PLDT Group and Meralco.
Only last May 26, business tycoon John Gokongwei Jr, owner and chairman emeritus of JG Summit, sold his own shares in the company worth $250 million. The move was reportedly for real estate purposes.
JG Summit’s last trading price decreased 1.74 per cent or P1.50 to close at P84.50.