MVP hikes shareholdings in Meralco

Manila Times.net

By Krista Angela M. Montealegre, Reporter

THE group led by Manuel Pangilinan has raised its stake in the country’s largest electricity distribution company, Manila Electric Co. (Meralco).

In separate disclosures to the Philippine Stock Exchange, Metro Pacific
Investments Corp. (MPIC) and Philippine Long Distance Telephone Co. (PLDT) said that their joint venture firm, Beacon Electric Asset Holdings Inc., acquired an additional 45.4 million shares equivalent to 4-percent of Meralco from the market and an undisclosed party.

To cover the purchase of additional shares, Beacon signed an P11-billion finance facility with First Metro Investment Corp. and PNB Capital & Investment Corp.

A total of 14.20 million shares at P287.40 each were crossed at the market on Monday for a total purchase price of P4.08 billion for the said shares.

The remaining shares bought from another entity would be crossed at later date because of deferred payment.

The acquisition brought the Pangilinan group’s economic interest in the power distributor from 34.8 percent to 38.8 percent.

Together with PLDT Communications and Energy Ventures, Inc,’s (PCEV) 6.1-percent direct holdings, the Pangilinan group will now control 45 percent of Meralco, cementing the group’s position as the single largest shareholder in the power utility.

PCEV, a unit of PLDT, is a holding company whose primary asset is its holdings in Meralco, held both directly and indirectly through Beacon.

“I am pleased that our shareholders will gain increased participation in the benefits of the hard work being put in by all the Meralco management to further enhance the business,” said Manuel Pangilinan, who chairs PLDT, MPIC, Beacon and PCEV.

Besides its recent purchase, the group has also expressed interest in lapping up more shares in Meralco.

“The aspiration is to buy maybe 3 [percent] to 4 percent more,” David Nicol, MPIC chief financial officer, said.

The Pangilinan group waited for its takeover threshold to expire last April before purchasing additional shares in Meralco. Prior to the latest acquisition, Beacon was 0.2 percent away from a mandatory tender offer for a 35 percent ownership, following the purchase of additional shares in the first quarter of last year.

Food and beverage giant San Miguel Corp. owns at least 27 percent of Meralco.

Meralco, whose service area makes up nearly half of the country’s economic output, accounted for 28 percent, or P438 million of MPIC’s consolidated income of P1.13 billion in the first three months. The power distributor’s core net income climbed 64 percent to P3.25 billion on higher distribution tariffs.

MPIC shares fell to P3.36 on Tuesday from P3.42 apiece on Monday, while PCEV shares rose to P6.20 from P5.50. Meralco shares went up to P242.60 from P241.00.