Metro Pacific consolidates Meralco stake in block sale

Manila Standard Today
by Jenniffer B. Austria


Metro Pacific Investments Corp. completed the consolidation of its stake in power retailer Manila Electric Co. with the block sale of some 68.8 million shares worth P15.13 billion Tuesday.


The Philippine Stock Exchange said it approved the block sale at P220 apiece.


Metro Pacific assistant vice president Melody del Rosario confirmed the block sale in a text message.


Metro Pacific Thursday disclosed that Beacon Electric Asset Holdings Inc., a special purpose company it jointly owns with PLDT Communications and Energy Ventures Inc., was acquiring an additional 6.1- percent interest in Meralco.


The 68.8 million Meralco shares were owned by PLDT Communications.


PLDT Communications in exchange agreed to purchase an additional 1.199 billion preferred shares of Beacon for P15.136 billion.


The acquisition will bring Beacon Electric’s economic and voting interest in Meralco to 45.352 percent.


“More importantly, it consolidates the wider group’s shareholding into Beacon Electric so that both MPIC and PCEV shareholders enjoy the full value of our Meralco investment,” Metro Pacific president Jose Ma. Lim said.


Beacon Electric in May signed an P11-billion loan agreement to fund the acquisition of an additional 4-percent stake in Meralco owned by businessman Eusebio Tanco.


First Metro Investment Corp. and PNB Capital & Investment Corp. arranged the loan.