Metrobank group goes into power biz with buyout of Panay Power

Metrobank subsidiaries First Metro Investment Corp. and Global Business Holdings Inc. (GBHI) have jointly entered into an agreement to acquire the entire equity interest in power generation company Panay Power Corp.

Panay Power Corp. is majority owned by First Generation Holdings Corp. (First Gen), which is a wholly-owned subsidiary of listed company First Philippine Holdings Corp. (FPHC).

Panay Electric Co., the utility distribution company operating in Iloilo, is the recipient of power generated by Panay Power.

First Metro Investment is the primary investment house of the Metrobank group of companies. GBHI, on the other hand, resulted from the merger of Global Bank and the acquired Solid Bank.

Reports indicate that the transaction would be consummated "within the week and valued at P2.329 billion."

It added that the acquisition by GBHI and FMIC was done "in partnership with Mirant Toledo Holdings Corp. to pursue business opportunities in power generation in the Visayas region."

Panay Power Corp. owns and operates a 72-megawatt (MW) power generation power plant in Barangay Ingore, Lapaz, Iloilo.

Operations started in 1999 and has produced viable power for the region.

"The newly-formed venture marks the entry of fresh investments into the power sector. This development serves well the national interest in assuring supply for the increase in future demand in electricity," the report added.

It also indicated that the controlling Lopez group in Panay Power may be rationalizing its interests in the energy sector.