Business World Online
Posted on June 27, 2011 09:28:34 PM
MANILA ELECTRIC Co. (Meralco) has moved to acquire a controlling stake in the Aboitiz Power Corp. unit that is building a 600-megawatt coal-fired plant in Zambales, disclosures filed with the local bourse showed.
MANILA Electric Co. yesterday said its board has decided to acquire a majority stake in the firm in charge of developing a 600-megawatt coal plant in Subic. --Jonathan L. Cellona
Meralco said its board yesterday decided to take over Redondo Peninsula Energy, Inc. (RP Energy) from Aboitiz Power and Taiwan Cogeneration International Corp. without specifying the purchase price.
“It is envisaged that the Meralco Group will have a majority ownership interest in RP Energy while Aboitiz Power and Taiwan Cogeneration International will be diluted equally and have a combined holding of less than 50%,” the distribution utility said.
RP Energy has the development rights over the coal-fired power plant planned to rise at the Subic Bay Freeport Zone. The planned acquisition falls in step with Meralco’s plans to start building a 1,500-megawatt (MW) power generation portfolio starting with a 600-MW base load plant and a 150-MW peaking plant by 2014.
The deal with RP Energy’s owners will be sealed “in the next few weeks,” Meralco said.
In a separate disclosure, the utility divulged plans to borrow P5 billion by issuing notes to bankroll corporate spending.
The fund-raising will involve P4.5 billion worth of fixed-rate notes due by 2021 and P500 million due by 2018.
Meralco had said it intends to build a 1,500-MW power generation portfolio to take advantage of the projected 11,900-MW supply gap in Luzon that could be seen by 2020.
Reported net income of Meralco for the first quarter went up 6% to P2.1 billion from P2 billion in the same period last year despite lower average pass-through costs and energy sales. Consolidated core net income grew by 64% to P3.2 billion in the first quarter from P1.98 billion.
Shares in Meralco closed at P275, up 1.55% from its previous close of P270.80 a piece. Shares in Aboitiz Power closed at P30.60, up 0.49% from its previous close. -- ENJD
“It is envisaged that the Meralco Group will have a majority ownership interest in RP Energy while Aboitiz Power and Taiwan Cogeneration International will be diluted equally and have a combined holding of less than 50%,” the distribution utility said.
RP Energy has the development rights over the coal-fired power plant planned to rise at the Subic Bay Freeport Zone. The planned acquisition falls in step with Meralco’s plans to start building a 1,500-megawatt (MW) power generation portfolio starting with a 600-MW base load plant and a 150-MW peaking plant by 2014.
The deal with RP Energy’s owners will be sealed “in the next few weeks,” Meralco said.
In a separate disclosure, the utility divulged plans to borrow P5 billion by issuing notes to bankroll corporate spending.
The fund-raising will involve P4.5 billion worth of fixed-rate notes due by 2021 and P500 million due by 2018.
Meralco had said it intends to build a 1,500-MW power generation portfolio to take advantage of the projected 11,900-MW supply gap in Luzon that could be seen by 2020.
Reported net income of Meralco for the first quarter went up 6% to P2.1 billion from P2 billion in the same period last year despite lower average pass-through costs and energy sales. Consolidated core net income grew by 64% to P3.2 billion in the first quarter from P1.98 billion.
Shares in Meralco closed at P275, up 1.55% from its previous close of P270.80 a piece. Shares in Aboitiz Power closed at P30.60, up 0.49% from its previous close. -- ENJD
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