THE new alliance between the Manila Electric Co. (Meralo) and Global Business Power Corp. (GBPC), a power-generation firm owned by George Ty, will further cement their presence in Luzon and the Visayas and, possibly, in Mindanao in the future.
“My sense is Meralco will focus largely in Luzon and GBPC will focus in the Visayas and, potentially, Mindanao,” Meralco President Oscar S. Reyes said. “At this point in time, we are not privy to what they are planning.”
After the stockholders’ meeting on Tuesday, Meralco Chairman Manuel V. Pangilinan said both firms will “focus on the Visayas and, hopefully, make our entry into Mindanao in the power sector, because the incoming president is from that particular area.” Reyes said there could be more synergies between the two aside from sourcing power from GBPC. “Moving forward, I think we have to respond to each others’ needs. We haven’t really looked at what further synergies might be available, but we will cooperate to enable us to bring down the costs of power generation and transmission.”
First Pacific Co. Ltd.’s associate, Beacon Electric Asset Holdings Inc., through wholly owned subsidiary Beacon PowerGen, last week signed an agreement with GT Capital Holdings Inc. of the Metrobank Group to acquire 56 percent of GBPC for P22.6 billion. Beacon Electric owns a 35-percent stake in Meralco. “The purchase of additional shares in Beacon Electric by MPIC [Metro Pacific Investments Corp.] is a logical step to consolidate First Pacific Group’s infrastructure and energy interests under MPIC,” First Pacific Managing Director Pangilinan said.
3 comments
Public listed giant corporations should and must invite SSS and GSIS in exploring and profiting from their business venture in order to share any largesse they may ripped. It is a way to help these Public Pension Fund institutions to be viable for mass benifit.
SEC should make it mandatory for new IPOs to be owned 5-10 by the Government of the Philippines. That way the Government will be one of the Board members and can keep a close eye on the wrongdoings of the Corporation as well as benefit on behalf of the sovereign people of the Philippines. That is INCLUSIVE GROWTH syempre naman. Viva La Republic Filipinas.
Is profit from sale of IPO or Intitial Public Offering taxable by the BIR ? Why not ? We are seeing IPOs sold at big premiums to the Fair Value ? and then after they debut at the PSE they go down 10-20%. I say tax these Corporations.