PLDT unit completes transfer of Meralco shares to Beacon

Business Mirror
TUESDAY, 25 OCTOBER 2011 18:23 MIGUEL R. CAMUS / REPORTER


PLDT Communications and Energy Ventures Inc. (PCEV) has completed the transfer of its remaining 6.1-percent stake in Manila Electric Co. (Meralco) to unit Beacon Electric Asset Holdings Inc. via a share block sale on Tuesday.


A notice to the Philippine Stock Exchange showed that 68.8 million Meralco shares were crossed at exchange at the agreed price of P220 each.


Beacon Electric, a joint venture between PCEV and Metro Pacific Investments Corp., now owns a 45.35-percent stake in the utility. Both MPIC and PCEV are units of Manuel V. Pangilinan-led First Pacific Co. Ltd., a holding firm based in Hong Kong.


Pangilinan’s group started consolidating its Meralco stake under Beacon Electric early last year amid the electricity retailer’s aggressive plans to enter the power generation sector.


Beacon Electric is acquiring the PCEV stake for P15.136 billion. As payment, Beacon Electric will issue 1.199 billion preferred shares to PCEV valued at the acquisition cost. The preferred shares will pay a dividend rate of 7 percent per annum.  


Meralco shares added 1.66 percent to P245 each on Tuesday.


Officials of MPIC have signaled in previous interviews that Beacon Electric can acquire additional shares in Meralco, although the company will not increase its stake beyond 50 percent to avoid having to make a costly tender offer to shareholders.


MPIC added 4.92 percent to P3.20 each, while PCEV shares did not move at P5.55 each on Tuesday’s close.


Other major shareholders of Meralco include San Miguel Corp., owner of at least 33.2 percent, and Lopez-led First Philippine Holdings Corp., which owns 6.6 percent.