San Miguel to sell Meralco at 'spectacular' price

MANILA, Philippines - San Miguel Corp. (SMC) may sell its stake in the Manila Electric Co. (Meralco) if it is given a “spectacular offer." Although the food conglomerate remains a “long term" investor in the Philippines’ largest electric company, SMC president Ramon S. Ang did not discount the possibility of selling its 27 percent stake in Meralco at a premium. “We bought into Meralco for a long-term," Ang said. “We are not a seller. But if given an offer we can't refuse such as P500 per share, I'm crazy not to offer that to the board. If there's a spectacular offer, it's my duty and responsibility to bring that to the board." San Miguel acquired its Meralco stake from the Government Service Insurance System (GSIS) for P90 per share in October last year. Shares of Meralco reached P124 apiece during Thursday’s trading at the Philippine Stock Exchange (PSE). The amount is five pesos lower than its 52-week high of P129 per share. Meralco shares are worth more than its acquisition price since SMC and leading telecommunications firm Philippine Long Distance Telephone Co. bought into the company, Ang said. He revealed that Manuel V. Pangilinan, PLDT chairman and managing director of Hong Kong conglomerate First Pacific Co. Ltd., has offered a few assets of the First Pacific group in exchange for San Miguel's shares in Meralco. These assets include stakes in Maynilad Water Services Inc., which provides water to Metro Manila's west zone, and Metro Pacific Tollways Corp. (MPTC), which operates the North Luzon Expressway. Ang said Pangilinan had offered a share-swap agreement before the May 26 annual stockholders' meeting of Meralco. “We're in talks. Pangilinan and I are friends. We can talk anytime about the offer," said Ang. Metro Pacific Investments Corp. (MPIC) hold full ownership of MPTC. It has a partnership with Consunji-led DMCI Holdings Inc. for the operation of Maynilad. San Miguel also remains keen on its venture to enter the telecommunications industry through the acquisition of listed Liberty Telecom Holdings Inc. and Express Telecom Inc. San Miguel has partnered with Qatar Telecom for its telecommunications intent. Once San Miguel acquires at least 35 percent of Liberty Telecom, it will be launching a tender offer to comply with regulatory requirements. San Miguel is willing to acquire as much as 49-percent stake in Liberty, excluding shares from the tender offer. San Miguel is also eyeing the Mariveles Grain Terminal, which is currently owned by listed company Asian Terminal Inc. However, a number of issues must be resolved first before the company buys it, Ang said. San Miguel will also pursue its interest in the country's mining sector. Although it has dropped its bid to acquire a minority stake in PT Adaro Energy, an Indonesian coal miner, Ang said the company's mining plans are “extensive and large." - GMANews.TV