MANILA, Philippines — Manuel V. Pangilinan-led Metro Pacific Investments Corp. (MPIC) now owns nearly half of Manila Electric Co. (Meralco) after completing a P12.4-billion deal with Ramon Ang’s San Miguel Group.
MPIC acquired 21.4 million common shares or 1.9 percent of Meralco from San Miguel Global Power Holdings Corp. (SMGP) at P580.99 each through a special block sale at the Philippine Stock Exchange on Oct. 8.
Following the transaction, MPIC’s shareholding in the power utility giant increased to 49.4 percent from 47.46 percent.
As previously disclosed, the conglomerate, whose interests span power, toll roads, water, health care, real estate, light rail and agribusiness, funded the deal using a combination of internally generated cash and financing.
The transaction reflects MPIC’s continued confidence in long-term growth prospects of Meralco, which provides electric service to more than eight million customers in Metro Manila and nearby provinces.
SMGP, the power arm of San Miguel Corp., expects the sale of its minority stake in Meralco to “unlock value from a long-held investment.”
It plans to use the proceeds to fund its renewable energy projects, in line with its long-term strategy of directing resources toward businesses in which it has a more direct operating role.
SMGP is the country’s second-largest power producer with a market share of 19.62 percent or about 5.53 million kilowatts in capacity, according to the Energy Regulatory Commission.
The company has substantial investments in thermal power generation across the country. It is also a partner of Meralco PowerGen Corp. and Aboitiz Power Corp. in the $3.3-billion liquefied natural gas venture in Batangas.