MPIC, PLDT raise stake in Meralco

MANILA, Philippines - The joint venture of Metro Pacific Investments Corp. (MPIC) and Philippine Long Distance Telephone Co. (PLDT) has acquired an additional stake in Manila Electric Co. (Meralco), bringing their group’s total holdings to 45 percent.

Beacon Electric Asset Holdings Inc. bought four percent of Meralco for P11 billion, said MPIC and PLDT, which are both partly owned by Hong Kong’s First Pacific Co. Ltd.

The unit signed a loan facility arranged by First Metro Investment Corp. and PNB Capital & Investment Corp. to fund the acquisition.

“The acquisition further cements the group’s position in one of the best-run companies in the Philippines,” said Jose Ma. K. Lim, CEO of MPIC and president of Beacon.

Beacon’s interest in Meralco is now 38.8 percent, while the group’s total stake, including that of PLDT unit, PLDT Communications and Energy Ventures Inc., is 45 percent.

Meralco is the biggest electricity distributor in the Philippines. It plans to spend P11 billion annually starting this year until 2014 to expand its distribution business. It has also earmarked about $2 billion until 2016 for new power plants with total capacity of 1,500 megawatts.

Meralco is partly owned by another corporate giant, San Miguel Corp., whose interest is at least 27 percent.

“I am grateful for the work put in by the joint lead arrangers of the finance facility and for the continued support of all the banks who participated in it. Beacon’s economic interest in Meralco is now 38.8 percent which taken together with PCEV’s direct holding gives the wider group 45 percent of Meralco,” Lim said.

MPIC and PCEV chairman Manuel Pangilinan said he is pleased that their shareholders will gain increased participation in the benefits of the hard work being put in by all the Meralco management to further enhance the business.

PCEV is a holding company whose primary asset is its holdings in Meralco, held both directly and indirectly through Beacon, while MPIC is the Philippines’ largest infrastructure investment management company.