Metro Pacific hikes stake in Meralco

MANILA, Philippines - The Metro Pacific Group has increased its stake in power distribution Manila Electric Co. (Meralco) with the acquisition by Beacon Asset Holdings Inc. of an additional 2.66 percent worth P8.85 billion.

Beacon, a special purpose vehicle jointly owned by Metro Pacific Investments Corp. (MPIC) and PLDT Communications and Energy Ventures Inc. (PCEV), purchased 30 million common Meralco shares at P295 each from First Philippine Utilities Corp., a member of the Lopez Group.

The exercise, when completed next month will increase Beacon’s holdings in Meralco to 48.02 percent from the current 45.36 percent.

In a press statement, Metro Pacific said the acquisition represents an opportunity to further consolidate Beacon’s investment in the power distribution sector.

“The group believes (the acquisition) will have significant growth as the Philippine economy grows. Meralco is now focused on growing its current business and in investing in new areas such as power generation, aimed at enhancing shareholder value and providing efficient and upgraded services for the public,” it said.

MPIC and PCEV will infuse P5.4 billion for the acquisition while Beacon will raise P5 billion from the capital markets.

First Metro Investment Corp. and PNB Capital and Investment Corp. have been tapped as lead arrangers and bookrunners for the P5-billion corporate notes facility.

Aside from Beacon and the Lopez Group, Meralco’s other significant shareholder is food-to-infrastructure conglomerate San Miguel Corp. with a 37-percent stake.