Friday, January 31, 2014

Ayala buys stake in power firm


Philippine Daily Inquirer
10:47 pm Friday, January 31, 2014

Conglomerate Ayala Corp. has completed the acquisition of a 17.1-percent stake in GNPower Mariveles Coal Plant Ltd. Co. (GMPC), owner of the 600-megawatt coal-fired plant in Mariveles, Bataan.
The plant has completed commissioning and started commercial operations earlier this week, Ayala disclosed to the Philippine Stock Exchange (PSE).
It was earlier reported that Ayala had bought into this power plant project for $155 million.
Ayala, through a wholly owned subsidiary, has achieved financial closing in relation to the acquisition, the disclosure said. This was under the terms of the sale and purchase agreement that the group earlier entered into with an affiliate of a fund advised by Denham Capital.
With the acquisition, the Ayala conglomerate is now a co-owner of the Mariveles power plant with power project developer Power Partners Ltd. Co. and Sithe Global Power LLC, a company owned by investors of The Blackstone Group.
The Mariveles power plant is a major capacity addition seen critical to alleviating potential power shortages in the Luzon grid. The plant uses pulverized coal technology designed to meet global standards, in line with Ayala’s goal of becoming a key player in the power business.
J.P. Morgan served as financial adviser to Ayala in the transaction. Doris C. Dumlao  source

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