LandBank won’t unload P1.777-B Meralco stake

The Land Bank of the Philippines (LBP) has no plans to sell its Manila Electric Co. (Meralco) shares worth P1.777 billion.

LBP president and chief executive officer Gary Teves said they prefer to hold on to their 48.8 million common shares of Meralco within the year despite increased stock market activity.

"We have no plans to sell this year," Teves said. "We believe that Meralco’s petition for a P0.30 per kilowatthour (kWh) rate hike will be approved. We are looking at a possible increase in (listed) prices due to the approval of the rate hike application," he added.

A rate increase would allow Meralco to implement its expansion program which was delayed by at least three years due to the continued postponement of its petition for a P0.30 per kWh rate increase with the Energy Regulatory Commission (ERC).

The LBP has 28.9 million "A" shares of Meralco and another 19.9 million "B" shares. As of Feb. 15, Meralco’s "A" shares closed at P30.50 per share while the "B" shares closed at P45.

"We will coordinate with other government agencies either to sell as a government block. That is one of our options," Teves said.

Meanwhile, LBP plans to declare a stock dividend of 500 million shares and a cash dividend of P200 million representing the 2001 operational period.

GFIs are required to declare a 50 percent cash dividend, which would be turned over to the National Government coffers. The 50 percent cash dividend should represent 50 percent of the net income for the period in question.