MVP's Metro Pacific to keep exposure in Meralco at 51%

Metro Pacific Investments Corp. (MPIC) intends to keep Manila Electric Company a publicly traded utility by observing the limits on equity participation, the chairman of both companies told reporters Monday.

 

“Well, we want to keep Meralco a listed company—so we would prefer not to breach the limits on the requirement for a general offer,” chairman Manuel V. Pangilinan said in a chance interview with reporters.

 

Asked if Metro Pacific would acquire 51 percent of Meralco, he said the holding company would not exceed the limit on the tender offer rule. “Something like that,” he added.

 

To protect investors, the Securities Regulation Code requires any group that holds over 51 percent of a listed company to make a tender offer and buy the remaining shares held by minority investors. This covers a significant change of ownership in a company that may affect the way it operates.

 

Metro Pacific is the largest shareholder in Meralco,  with a 48.3 percent interest through wholly owned subsidiary Beacon Electric Asset Holdings Inc.

 

The holding firm bought 15 percent to 16 percent of the 64.3 million Meralco shares worth over P17 billion sold by diversified conglomerate San Miguel Corp. on July 19. The shares accounted for over 5 percent of SMC’s 32.8 percent stake in Meralco which San Miguel bought five years earlier P90 per share or a third of the utility's present stock price.

 

MPIC vice president for corporate communications Melody del Rosario said in a disclosure to the Philippine Stock Exchange the holding company owns less than 50 percent of the outstanding capital stock of Meralco via Beacon Electric.

 

“We wish to clarify that with the additional shares acquired from SMC, Beacon Electric will own less than 50 percent of the outstanding capital stock of Meralco,” Del Rosario noted.

 

Of the 64.3 million shares sold by SMC, she said the special purpose company jointly owned by MPIC and PLDT Communications and Energy Ventures Inc.—Beacon Electric—bought 10 million shares. — VS, GMA News