MRC Allied Industries Inc. has signed an agreement with with Global Emerging Markets Investment Advisors, Inc. and Global Emerging Markets Global Yield Fund Ltd. (GEM) which will invest up to P1.38 billion in the listed firm.

In a disclosure to the Philippine Stock Exchange Tuesday, MRC said it had executed the Equity Line of Credit Agreement with GEM last March 15.

Under this Agreement, GEM has committed to subscribe for new equity in MRC up to a total value of P1.38 billion over the next three years.

GEM is a $3.4 billion investment group having completed 285 transactions in 60 countries. The firm is an alternative investment group that manages a diverse set of investment vehicles across the world.

GEM’s funds include: CITIC/GEM Fund; VC Bank/GEM Mena Fund; Kinderhook; GEM Global Yield Fund; GEM India and Banco Pine/GEM Funds.

MRC majority shareholder Benjamin Bitanga had said earlier that the company will receive P1.4 billion in cash from a fund manager, as well as a P3.5-billion in the form of a coal or bunker fired power plant from Lucio Tan Jr.

Upon completion of these transactions, Tan will become the controlling shareholder of MRC, paving the way for the realignment of the listed firm’s business.

“We envision that the company will be more active in the power business although we’re keeping our real estate assets,” Bitanga said.

Bitanga said the power plant, located in northern Luzon, has a capacity of 200 megawatts and can generate sales of $40 million or P2 billion a year.

With power generation as its main business, MRC is open to acquiring more power facilities which would not go through a competitive bidding process, Bitanga said.

He said MRC is seen to swing to profitability this year with the acquisition of the power plant, which shall start commercial operations in the second half of the year.

Bitanga said the firm is keeping its 160-hectare industrial estate in Naga City, Cebu located 35 kilometers away from the Mactan International Airport.