Meralco to buy Singaporean power company

Partners with Hong Kong's First Pacific Company Ltd in takeover.

Manila Electric Company, the Philippines’ largest power distributor, and First Pacific will take a 70% interest worth US$488 million in a Singaporean power firm, GMR Energy (Singapore) Pte. Ltd.

GMR Energy is in the advanced stage of building a 2x400 megawatt liquefied natural gas power plant in Jurong Island, Singapore. Its Jurong facility is expected to begin commercial operations this December.

First Pacific and Meralco formed FPM Power Holdings Ltd., which entered into a share purchase deal with GMR Infrastructure (Singapore) Pte. Ltd. and GMR Infrastructure Ltd.

First Pacific will spend US$488 million plus foreign exchange adjustments to buy out GMRIL's entire 70% share in GMR Energy.

Meralco chairman Manuel Pangilinan said the buy-in is part of Meralco's long-term vision to be a regional player in the power industry.

"It is anticipated that the investment shall be income-accretive to the Philippine economy and to Meralco," Pangilinan said.