Korea Electric Power Corp. (015760.SE) said Wednesday that it will acquire a 40% stake in a power plant in the Philippines from BG Group PLC (BG.LN) for about $400 million.

Korea Power, or Kepco, said in a statement that the power plant generates about $1 billion in annual revenue.

The exact timing of the stake purchase will be determined after approval from the plant's majority shareholder, First Philippine Holdings Corp. (FPH.PH), and creditor banks, it said.

Kepco, South Korea's sole electricity transmission and distribution company, said it hopes the acquisition will present future opportunities for cooperation with First Philippine to expand Kepco's presence in the country.

-By Se Young Lee, Dow Jones Newswires; +82 2 3700 1904; vincent.lee@dowjones.com