MANILA - Meralco's power generation firm PowerGen Corp (MGen) has acquired 100 percent ownership of Global Business Power Corp (GBP) in a move to organize the group's power assets.

MGen signed agreements with JG Summit Holdings and Beacon Powergen Holding Inc, a wholly owned subsidiary of Pangilinan-led Metro Pacific Investments Corp, to acquire all their GBP stake.

Combined, their stake is at 86 percent, valued at P34.44 billion. The transaction is expected to be completed by the first quarter of 2021.

"BEAHI holds a 56 percent ownership interest in GBP while JG Summit holds a 30 percent interest. MGen currently owns the remaining 14 percent. As a result of the transaction, MGen will own 100 percent of GBP," Meralco told the stock exchange on Wednesday.

The transaction will consolidate power generating assets under MGen.

Its parent firm Meralco is jointly held by MPIC and JG Summit. MPIC owns 45.46 percent of Meralco, while JG Summit holds 29.56 percent stake in the electric utility firm.

Meralco said GBP's addition to MGen will "deliver scale and operational synergy" to both firms, and provide "ample and reliable supply of power to distribution utilities, electric cooperatives and other customers at competitive rates."

GBP has a sizeable portfolio of power plants in Visayas and Mindanao, generating an aggregate capacity of 1,091 megawatts.

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