SPV Beacon to buy 30M Meralco shares at P295 apiece

Metro Pacific Investments Corp. (MPIC), the local arm of Hong Kong conglomerate First Pacific Co. Ltd., and PLDT Communications and Energy Ventures Inc. on Tuesday said that Beacon Asset Holdings is buying additional stake in power utility Manila Electric Co.   In a statement posted by the Philippine Stock Exchange on its website, MPIC said Beacon is buying an addition 2.66 percent in Meralco, representing 30 million common shares, from First Philippine Utilities Corp.   Beacon, a special purpose vehicle (SPV) jointly owned by MPIC and PLDT Communications, will buy the shares from First Philippine Utilities at P295 per share.   "Currently, Beacon holds approximately 45.36 percent of Meralco. The acquisition of FPUC's Meralco shares will increase the beneficial interest of Beacon in Meralco to 48.02 percent. It is expected that the transaction will be completed on February 1, 2012," MPIC said.   With the purchase agreement, Beacon, MPIC, PLDT Communications and Philippine Long Distance Telephone Co. executed an amendment to the March 30, 2010 Revised and Restated Cooperation Agreement with First Philippine Utilities, First Philippine Holdings Corp. and Lopez Inc.   The revision will allow the Lopez Group to keep a board seat in Meralco under certain circumstances after the transaction has been consummated. P5.4-B equity infusion   MPIC said the money to buy additional Meralco shares will come from equity infusion of P5.4 billion to which MPIC and PLDT Communications will subscribe equally. Beacon is also set to issue P5 billion worth of corporate notes.   "The acquisition of the additional 2.66 percent of Meralco from the Lopez Group represents an opportunity to further consolidate Beacon's investment...” MPIC noted.   “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," MPIC said.   Apart from PLDT Communications and MPIC group, diversified conglomerate San Miguel Corp. also holds a substantial stake in Meralco.   In August last year, San Miguel said it sold part of its Meralco holdings to food unit San Miguel Pure Foods Co. The sale involved 59.09 million shares or 5.2 percent of Meralco at P220 per share or P13 billion.   Prior to the sale to Pure Foods, San Miguel consolidated its Meralco interest with the stake held by businessman and former trade minister Roberto Ongpin.   The consolidation brought San Miguel's Meralco shareholdings to 37 percent. — CMA/VS, GMA News