Meralco, Metrobank units tie up for projects

Business World Online

Posted on January 28, 2013 10:03:19 PM

SUBSIDIARIES of Manila Electric Co. (Meralco) and Metropolitan Bank & Trust Co. (Metrobank) have agreed to cooperate on power generation projects, the former said in a disclosure yesterday.

Meralco said that, in a regular meeting held yesterday, its board of directors cleared “the execution of a memorandum of understanding between Meralco PowerGen Corp. and Global Business Power Corp. to jointly pursue and evaluate certain potential power generation projects in the Philippines.”

Global Business, through its subsidiaries, owns power plants in Cebu, Iloilo, Aklan and Mindoro Oriental with total capacity of 633 megawatts. One of its two main stakeholders, First Metro Investment Corp., is a unit of Metrobank, flagship of Ty conglomerate GT Capital Holdings, Inc.

Besides the partnership with Global Business, Meralco’s board also approved the “execution of a tripartite agreement” with Trans-Asia Oil and Energy Development Corp. and the Philippine Economic Zone Authority “for the supply of power to Cavite Economic zone and its locators.”

The board also approved the registration of Meralco’s retail electricity supply business segment as trading participant “and/or” as a direct member of the Wholesale Electricity Spot Market.

Meralco officials were not available for comment as of press time.

Yesterday saw shares of Meralco adding P9.60 to P294.20 apiece, those of GT Capital losing P2 to P668, those of Metrobank gaining P1 to P107, and those of Trans-Asia edging up four centavos to P1.45 each.

Beacon Electric Asset Holdings, Inc., which has the biggest stake in Meralco, is partly owned by the Philippine Long Distance Telephone Co (PLDT). Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a minority stake in BusinessWorld. -- CAMCF   source