MANILA, Philippines - Philippine Long Distance Telephone Co. (PLDT) is raising its core net income guidance for this year to P30 billion from P28 billion amid expected gains from the sale of its interest in Manila Electric Co. (Meralco) to Metro Pacific Investments Corp. (MPIC).
PLDT chairman Manuel V. Pangilinan told reporters yesterday the telco is adjusting its core net income guidance for the year to P30 billion from P28 billion following the sale by its wholly owned subsidiary PLDT Communications and Energy Ventures (PCEV) of its stake in Meralco to MPIC.
“There will be some gains from the Beacon transaction,” Pangilinan said.
PCEV has investments in Meralco through Beacon Electric Asset Holdings Inc. (BEAHI).
BEAHI is a joint venture company composed of PCEV and MPIC.
The PLDT unit yesterday entered into a share purchase agreement with MPIC for the sale of 645.76 million common shares constituting 25 percent of the outstanding common shares of BEAHI, and 458.37 million preferred shares representing 25 percent of the total economic rights on the outstanding preferred shares of BEAHI.
The transaction is valued at P26.20 billion and will be paid in five tranches, with the first amounting to P17 billion made yesterday.
The second payment worth P2 billion is due in June next year, while the third payment of P2 billion will have to be paid by June 2018.
Another payment of P2 billion will be due by June 2019, while the final payment of P3.2 billion will have to be settled by June of the following year.
Pangilinan said proceeds of the sale are intended to be used to fund its acquisition with Globe Telecom Inc. of the telco assets of San Miguel Corp.
As of the first quarter, PLDT’s core net income slipped 22 percent to P7.2 billion from P9.3 billion in the same period in 2015.
The telco’s net income also declined 34 percent to P6.2 billion in the first quarter from P9.4 billion in the same period last year.
PLDT ended 2015 with core net income of P35.2 billion, in line with its guidance for the year.