By Alena Mae S. Flores Posted on Mar. 05, 2013 at 12:01am
Manila Electric Co., the country’s biggest power distributor, on Monday announced it had agreed to join First Pacific Co. of Hong Kong, through its wholly owned subsidiary Meralco PowerGen Corp., to take a 70-percent interest in an 800-megawatt power project in Singapore using a joint venture company formed for that purpose for $488 million.
First Pacific through FP Power Assets Ltd. and Meralco PowerGen will each subscribe to and pay for the shares of FPM Power Holdings Ltd. under a 60-40 equity sharing. FPM Power will serve as the corporate vehicle to secure the business interest of the joint venture.
FMP Power has entered into a share purchase agreement with GMR Infrastructure (Singapore) Pte. Ltd. and GMR Infrastructure Ltd. to acquire the majority shares of GMR Energy (Singapore) Pte. Ltd.
FPM Power has agreed to pay S$600,006,666 (about US$488 million) plus certain adjustments for time value of money after March 31 to GMR Infrastructure for the latter’s 70-percent interest in GMR Energy.
The remaining 30-percent of GMR Energy is owned by Petronas of Malaysia, the national oil company. The closing of the transaction is subject to the fulfillment of certain terms and conditions within 30 days.
A further equity contribution to the project amounting to about S$60 million (about US$49 million) is anticipated.
GMR Energy is in an advanced stage of building an 800-megawatt liquefied natural gas combined cycle combustion turbine power plant located in Jurong Island, Singapore.
The plant is expected to start commercial operations in December. source
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