Meralco unit buys stake in PFBSI for P159M

By Jordeene B. Lagare January 8, 2021
https://www.manilatimes.net/2021/01/08/business/companies/meralco-unit-buys-stake-in-pfbsi-for-p159m/824625/

The power generation arm of the Manila Electric Co. (Meralco) is acquiring a 20-percent stake in PowerSource First Bulacan Solar Inc. (PFBSI) for P159 million.

In a disclosure of Thursday, the listed electricity distributor said unit Meralco PowerGen Corp. (MGen) would buy the stake through its wholly owned subsidiary MGen Renewable Energy Inc. (MGreen).

The transaction would raise MGen’s stake in PFBSI from 40 percent to 60 percent.

PFBSI is constructing a 50-megawatt utility-scale solar facility in Bulacan’s San Miguel town.

The P4.25-billion project covers a land area of 72 hectares. It is expected to begin commercial operations in the first quarter.

The facility is 74.31-percent complete as of Oct. 12, 2020, after its construction resumed last May.

The acquisition is in line with MGen’s goal to diversify and increase investment in the renewable energy sector.

“The acquisition increases the attributable and net sellable capacity of MGreen, which is in line with MGen’s goal of building a portfolio of 1,000-MW renewable energy projects in the next five to seven years,” Meralco said.



Prior to the deal, PFBSI is co-owned by MGreen (40 percent), Powersource Energy Holdings Corp. (36 percent), and Sunseap Philippines Solar Holdings PTE Ltd. (24 percent).

Incorporated in 2015, PFBSI is into the construction and operation of solar-powered generation facilities, among others.

Meralco shares dropped by P2 or 0.67 percent to close at P297 apiece on Thursday.