Pangilinan takes top post in Meralco, replaces Lopez

Business World Online

Posted on May 29, 2012 09:54:26 PM

OFFICIALS FROM the First Pacific group have moved up the ranks at Manila Electric Co. (Meralco) after Manuel M. Lopez stepped down as chairman yesterday.

In Mr. Lopez’ place, Manuel V. Pangilinan has been elected chairman, cementing his camp’s takeover of the distribution utility.

Mr. Pangilinan is the managing director and chief executive of First Pacific Co. Ltd., which controls Meralco shareholder Beacon Electric Asset Holdings, Inc. through subsidiaries Metro Pacific Investments Corp. and PLDT Communications and Energy Ventures, Inc.

But Mr. Lopez will remain on the board, saying he stepped down to focus on his role as the Philippine Ambassador to Japan.

“I have had the opportunity to experience Meralco from a unique vantage point. Today, for the last time I address you from my position as your chairman. As I step down as your chairman, it is with a great sense of fulfillment and pride that I have seen the significant expansion of Meralco’s franchise reach, the tremendous growth of our customer base and the truly quality customer service experience,” said Mr. Lopez during the firm’s annual stockholders’ meeting held yesterday.

With the ascent of Mr. Pangilinan as chairman, Oscar S. Reyes -- who sits on the advisory board of First Pacific’s Philippine Long Distance Telephone Co. (PLDT) -- assumed the position of president and chief executive, the position previously held by Mr. Pangilinan.

Moving forward, power prices should moderate as Meralco seals cheaper agreements with suppliers, Mr. Pangilinan said.

“The new power supply agreements that we signed with independent power producers are P0.50 per kilowatt-hour lower than the previous transition supply contracts with the National Power Corp. This will translate to a savings of about P4 billion yearly for our consumers,” he said.

The latest movement marks the Lopez family’s weakening grip on its crown jewel from when it first bought Meralco from its American owners in 1961.

Lopez-led First Philippine Holdings Corp. currently holds 3.9% of Meralco. It sold majority of its shares to Beacon Electric earlier this year. The agreement allowed the Lopez group to hold one board seat.

The share sale brought Beacon Electric’s stake in Meralco to a total of 48.02% from 45.36%.

Mediaquest Holdings, Inc., a unit of the PLDT’s Beneficial Trust Fund, has a minority stake in BusinessWorld. Shares of Meralco rose by 1.79% to P228 apiece yesterday. --ENJD    source