GT Capital bets big on infra

MANILA, Philippines -  GT Capital Holdings Inc. wants to place a bigger bet on the lucrative infrastructure sector on the back of the Duterte administration’s plan to usher in the so-called golden age of infrastructure in the country.

GT Capital chief financial officer Francisco Suarez Jr. said the conglomerate is looking at potential acquisitions related to infrastructure but he declined to elaborate.

“We’re looking at a potential acquisition (in infrastructure),” he said on the sidelines of a recent company briefing.

He said nothing is final yet.

At present, GT Capital’s presence in infrastructure is through Metro Pacific Investments Corp. (MPIC), the tollways and infrastructure conglomerate chaired by tycoon Manuel V. Pangilinan.

In May last year, GT Capital of taipan

George Ty acquired a 15.6 percent stake in MPIC in a move that marked its shift to the capital intensive and lucrative infrastructure sector from the highly regulated

power business.

MPIC, meanwhile, gained a 56 percent stake in GT Capital’s Global Business Power Corp. (GBCP), the leading power generation company in the Visayas.

GT Capital ceded majority control of GBPC to MPIC associate Beacon Electric Asset Holdings Inc. but entered as a strategic investor in MPIC, making it the second largest investor in the infrastructure conglomerate as it sets its sights on the growing infrastructure business in the country.

GBPC is the leading power supplier in Visayas with an aggregate 852 MW of coal and diesel powered generating capacity at present. The main development project is a 670 MW super critical coal fired plant in La Union, Pangasinan.

Other GT Capital officials said the company is willing to increase its stake in MPIC if there is an opportunity as it is now reaping the benefits of its entry into the infrastructure conglomerate.

Officials said this would all depend on the Pangilinan-led company.

The company may also enter as an investor in MPIC’s subsidiaries including tollways operator Metro Pacific Tollways Corp. if there are opportunities, officials said.

GT Capital’s businesses are housing and property through Federal Land Inc.; automotive through Toyota Motor Philippines; banking through Metrobank, insurance through AXA Philippines, and financial services through Toyota Financial Services Philippines Corp.

The company is pouring in P47 billion in capital expenditures this year as it remains committed to growing its various businesses.

It grew its first quarter core net income 12 percent to P3.2 billion from P2.8 billion a year ago.

Revenues rose 31 percent to P48.8 billion during the period from P36.8 billion a year ago, buoyed by strong auto sales and stronger banking and insurance business.