MANILA, Philippines - Manila Electric Co. has completed the sale of 24.95 percent of Indra Philippines to Metro Pacific Investments Corp.
The deal involved the sale of 84,012 common shares of Indra or about 24.95 percent of the outstanding capital of the information technology firm, for P326.52 million.
Indra, a joint venture between Meralco and Indra Sistemas S.A. of Spain, is a leading IT service provider.
The sale effectively reduced Meralco’s stake in Indra to 24.95 percent.
MPIC has an aggregate 32.48 percent direct and indirect interest in Meralco.
“The entry of MPIC into Indra will enable the latter to leverage on the combined strengths of its shareholders to expand its business in the country and in the region,” Meralco said in a disclosure to the Philippine Stock Exchange.
Indra has worked on a number of large systems projects for various MPIC portfolio companies.
“Economic benefits are expected to accrue to MPIC as a shareholder of Indra Phils. as Indra Phils. expands its business in the Philippines and in South East Asia,” the conglomerate said.
“Considering that MPIC and Meralco are related entities, the purchase price consideration was determined after a valuation process conducted by Credit Lyonnais Securities Asia as an independent third party appraiser.
MPIC, chaired by business tycoon Manuel V. Pangilinan, holds interests in water utilities through Maynilad Water Holding Co. Inc. and Philippine Hydro Inc.
Its toll roads operations are under MPTC, the holding company of Manila North Tollways Corp., Cavitex Infrastructure Corp., Tollways Management Corp., and Don Muang Tollway Public Ltd.
MPIC also has investments in power distribution through Beacon Electric Asset Holdings, which in turn holds the company’s investments in Meralco. In the area of healthcare, it has five hospitals in Metro Manila and one each in Central Luzon, Bacolod City and Davao City.
It also has investments in rail through the operations and maintenance of the Light Rail Transit (LRT) and ticketing services by Automated Fare Collection Services.