MVP group shifts Meralco shares

Manila Times.net
Published : Wednesday, October 26, 2011 00:00 
 Written by : KRISTA ANGELA M. MONTEALEGRE REPORTER


THE group of Manuel Pangilinan on Tuesday executed a special block sale of Manila Electric Co. shares as part of the consolidation of holdings in the country’s largest power distribution utility.


In a memorandum, the Philippine Stock Exchange said it approved the execution of the P15.14-billion block sale covering the transfer of PLDT Communications and Energy Ventures Inc.’s 68.8 million shares comprising about 6.1 percent of Meralco to Beacon Electric Asset Holdings Inc.


The shares were priced at P220 each.


“[The group was] just moving [the shares] from PCEV to Beacon Electric which is our 50-50 joint venture holding company with PCEV,” David Nicol, Metro Pacific Investments Corp. chief finance officer, said in a text message.


Last week, MPIC announced the Pangilinan group will consolidate its Meralco stake under Beacon Electric after which PCEV will subscribe to 1.199 billion preferred shares of Beacon Electric for an issue value of P15.14 billion.


After the block sale, Beacon Electric raised its interest in Meralco from 39.20 percent to 45.35 percent, making the former the single largest shareholder of the utility.


PCEV would no longer directly hold any shares in Meralco.


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


PCEV acquired its original 20 percent investment in Meralco in July 2009 and previously transferred 154.2 million shares to Beacon Electric in March 2010.


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 31 percent, or P1.09 billion of MPIC’s consolidated income of P2.658 billion in the first six months of this year.


MPIC shares rose to P3.20 on Tuesday from P3.05 on Monday, while Meralco shares jumped to P245 each from P241 apiece. PCEV shares were last traded on Monday at P5.55 apiece.