Wednesday, June 13, 2012

San Miguel power subsidiary strengthens hold on Meralco


Business World Online
Posted on June 13, 2012 09:57:40 PM


DIVERSIFIED CONGLOMERATE San Miguel Corp. has strengthened its hold over Manila Electric Co. (Meralco) after its subsidiary finalized an earlier purchase of P56.67 billion worth of shares previously held by the Social Security System (SSS).

San Miguel, through SMC Global Power Holdings Corp., has thus hiked its stake in the utility to 32.39% from a previous 21.46% as of end-March, keeping the conglomerate as the second largest shareholder after Pangilinan-led Beacon Electric Asset Holdings, Inc. which holds 42.25%, based on data from the local bourse.
“We advise that 62,990,638 common shares of [Meralco] were crossed [on June 11] in the Philippine Stock Exchange (PSE) via a special block sale by the SSS in favor of SMC Global Power,” a disclosure showed.
SMC Global is San Miguel’s energy arm, which is looking to debut on the PSE within the year.
It was reported back in 2009 that SSS was selling off its stake in Meralco for roughly P5.67 billion to Global 5000 Investment, Inc., whose owners make up the dominant voting bloc in San Miguel. The transaction was to be completed in three installments, earlier reports stated, amid claims by the Commission on Audit that the transaction as “dubious” on the basis that the net worth of the Global 5000 Investment was lower than the sale price.
SSS and San Miguel were not immediately available to comment.
The shares turned over to SMC Global Power represent 5.6% of Meralco’s outstanding capital stock. They were sold at P90 apiece, 63.50% lower than Meralco’s closing price of P246.60 on Monday when the shares were crossed.
In a separate development, San Miguel confirmed it will pursue an earlier announced sale of preferred shares following a planned increase in its authorized capital stock, a separate disclosure showed yesterday.
San Miguel’s issuance of new Series “2” preferred shares and the hike in its authorized capital to P30 billion from a previous P22.50 billion, as well as other details, will be presented for approval to shareholders at San Miguel’s annual stockholders meeting today, the disclosure added
San Miguel was established in 1890 initially as a single-product brewery.
In recent years, the company has significantly expanded into food, beverage and packaging, as well as heavy industries including power and other utilities, mining, energy, tollways and airports.
Last month, San Miguel ventured into airline operations after it acquired a 49% interest in the holding company of flag carrier Philippine Airlines.
The conglomerate recorded a 19% increase in its first-quarter net income to P8.5 billion from P7.1 billion in the same period last year, anchored on the robust results of a majority of its businesses in the period.
Consolidated sales revenues this year, meanwhile, rose by 12% to P142 billion.
San Miguel shares fell by 0.17% to P114.20 apiece yesterday. -- Franz Jonathan G. de la Fuente   source

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