The Philippines’ largest power distributor Manila Electric Co (Meralco) signed a joint venture agreement with Singapore-based Blue Energy Holdings and Management Corp to co-develop various hydroelectric power projects.
Both companies also signed on Wednesday a shareholders’ agreement tasking Blue Energy to put up a joint venture company through which they will jointly pursue hydro power ventures.
Meralco and Blue Energy likewise agreed to subscribe to new shares of the joint venture to be incorporated by the parties in total of 3,124,999 shares priced at P1.00 per share.
The shares will represent 50 per cent minus one share (50% – 1 share) of the authorized capital stock of the proposed JVC.
Blue Energy, as shown on Bloomberg, is a private investment vehicle co-owned by Xie Ping and Qing Guangmei.
Meralco’s net income fell 28 per cent to P5.27 billion in the second quarter of 2016, citing a tariff cut offset an increase in sales.
The Pangilinan-led power firm also recorded a core net income, which excludes one-time, exceptional gains and charges, less 27 per cent to P5.29 billion from the same period in 2015, resulting to a core net income for the first half of 2016 to P10.4 billion.
Meralco’s last trading price per share decreased 0.69 per cent or P2 to close at P289 apiece.