P27-B Meralco shares changed hands on Friday

business mirror

SUNDAY, 07 AUGUST 2011 18:05 PAUL ANTHONY A. ISLA

ABOUT 300.9 million shares of Manila Electric Co. (Meralco) were traded on Friday for P27 billion, according to the Philippine Stock Exchange (PSE). 

The PSE report showed that the block sale of Meralco shares were traded at only P90 per share at several transactions. 

Meralco’s share price closed at P265 per share on Friday’s trading.  Sources, who requested anonymity, speculated that the latest transaction could involve the sale of Government Service Insurance System (GSIS) shares in Meralco to San Miguel Corp. (SMC)  

“It seems to be the execution of GSIS held shares that have been agreed to be sold and transferred to San Miguel in the past,” sources said.

SMC earlier said in a disclosure that it acquire 300.9 million GSIS shares in Meralco for P90 per share and is payable in three years or by 2011. As a result of said transaction, San Miguel was able to appoint four of its representatives to the Meralco board.

SMC officials declined to comment.

SMC, PLDT, First Philippine Holdings Corp. and other minority shareholders control Meralco. Meralco earlier said it expects its core net income to reach P14 billion by year-end from P12.2 billion last year. 

“We expect our core net income to increase by 15 percent to P14 billion, as we expect electricity sales in the second half this year to be broadly similar to that realized in the first half and reflecting slightly lower distribution tariffs for this period as approved by the Energy Regulatory Commission under our third regulatory period,” said Manuel V. Pangilinan, Meralco president and chief executive. The Meralco chief said they are taking initiatives to hike electricity sales in the second half to continue to deliver superior results to their stakeholders. 

Pangilinan added that the Meralco board has reaffirmed its dividend policy and declared a regular dividend of P3.45 per share or equivalent to 50 percent of core net earnings. The board, according to Pangilinan, will also take a “look-back” approach by year-end to determine if a special dividend is needed.

Betty Siy-Yap, Meralco senior vice president and chief finance officer, said the company’s consolidated net income increased by 25.6 percent to P6.091 billion in the first half of the year from P4.851 billion during the same period last year. 

Yap added that Meralco’s core net income also increased by 34.7 percent to P7.822 billion in the first half of the year from P5.805 billion in the same period last year. She said the increase in income was driven by the adjusted distribution rate as a result of the implementation of the tariff adjustment for the fourth regulatory year of the second regulatory period; higher volume sold to commercial customers; and lower operating costs.

(Paul Anthony A. Isla)