Japan’s Orix Corp acquires 20% stake in Global Business Power

MANILA, Philippines - First Metro Investment Corp. (FMIC) the investment unit of Metropolitan Bank & Trust Co. (Metrobank), has firmed up the sale of 200 million shares of Global Business Power Corp. (GBPC) to Orix Corp. of Japan worth P7.15 billion.

“The signing of the share sale and purchase agreement represents a significant step in pursuing Global Business Power’s strategy. We believe that Orix will provide the company with strong, well-financed strategic partner that will contribute to its future growth,” FMIC chairman Francisco Sebastian said.

The sale will leave FMIC with a 29.11 percent stake in GBPC. Orix will take up 20 percent while GT Capital Holdings Inc. will retain its majority stake at 50.89 percent.  GT Capital is the listed investment holding company of the Ty family, the component businesses of which include GBPC and Metrobank. According to Sebastian, the sale of GBPC shares is also in support of Metrobank’s effort to raise funds for the upcoming implementation of Basel III in the Philippines on Jan. 1, 2014.

GBPC is one of the largest independent power producers in the Visayas. It currently owns and operates nine power plants, with a total installed capacity of 627 megawatts (MW).

From a 230 MW bunker fuel capacity in 2006, the company has completed a 420-MW expansion program for its plants, utilizing clean coal-fired technology. The expanded plants started commercial operations in 2011.

GBPC’s major plants are located in Toledo City in Cebu and in Iloilo City in Panay Island, supplying power to private utility companies such as Visayan Electric Co. (VECO), Panay Electric Co. (PECO), export and industry zones in Mactan and Balamban, mining and industrial companies like Carmen Copper Corp. and Philippines Phosphate Fertilizer Corp. (Philphos), as well as electric cooperatives in most Visayas islands. GBPC has further embarked on another expansion program for its major power plants in the cities of Iloilo and Toledo.

Meanwhile, Orix is a leading integrated financial services group that provides products and services to corporate and retail customers in Japan and in other countries as well.

In Japan, Orix is expanding into energy related businesses across a wide range of areas, including energy saving service business (ESCO), electric power trading and power generation using renewable energy such as solar, geothermal and wood chip biomass.

In the Philippines, Orix jointly established a leasing company with Metrobank. The company has built a firm business base in the Philippines with GT Capital as strategic partner.