PLDT unit, MPIC consolidate Meralco shares

Manila Times.net
Published : Friday, October 21, 2011 00:00 
Written by : KRISTA ANGELA M. MONTEALEGRE REPORTER


THE Pangilinan group announced on Thursday that it would consolidate its shares in the country’s largest power distribution utility under one company.


In a disclosure to the Philippine Stock Exchange, Metro Pacific Investment Corp. (MPIC) said PLDT Communications and Energy Ventures Inc. (PCEV) would transfer 68.8 million shares comprising about 6.1 percent of Meralco to Beacon Electric Asset Holdings Inc. at P220 each, or P15.14 billion.


PCEV will then subscribe to 1.199 billion preferred shares of Beacon for an issue value of P15.14 billion.


The acquisition of shares will raise Beacon’s interest in Meralco from 39.20 percent to 45.35 percent, making the company the single largest shareholder of Meralco.


After the transaction, PCEV will no longer directly hold any shares in Meralco.


“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,” Jose Ma. Lim, MPIC chief executive said.


The acquisition price was based on a discount to the 15-day weighted average share price of Meralco, its share price targets as published by various equity research analysts and comparable market transactions.


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


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


MPIC shares fell to P3.01 on Thursday from P3.06 on Wednesday, while Meralco shares dropped to P240 from P245.60 apiece. PCEV shares were last traded on October 14 at P5.95 apiece.