MPIC raises stake in Beacon Electric

Investment holding company Metro Pacific Investments Corp. (MPIC) on Monday said it has entered a purchase agreement to boost its interest stake in Beacon Electric Asset Holdings by 25 percent for a purchase price of P26.2 billion.

“We are acquiring a very experienced power firm,” MPIC President Jose Ma. Lim told reporters in the company’s headquarters in Makati City.

The purchase consideration will be settled with P17.0 billion cash and the P9.0-billion balance over the next four years. This will effectively hike MPIC’s equity stake in Beacon from 50 percent to 75 percent and will decrease PLDT’s share holdings from 50 to 25 percent.

“Upon completion MPIC will continue to own a direct 15-percent interest in Manila Electric Co. (Meralco) and, through its 75-percent interest in Beacon Electric, a further 26.2 percent – thereby taking its effective ownership interest in Meralco to 41.2 percent and in Global Power to 42 percent directly and about 9.1 percent indirectly (through Meralco),” MPIC said in a separate statement.

MPIC and PLDT are main units of Hong Kong-based First Pacific Co. Ltd., the other being Philex Mining Corp.

PLDT earlier said that the proceeds from the transactions will be used to finance its acquisition of 50 percent of San Miguel Corp.’s telecommunications business, alongside Globe Telecom Inc. which will buy the remaining 50 percent. 

According to MPIC, the acquisition is part of plans to continually expand its footprint as an investment holdings company which mainly relies on dividend shares from subsidiaries.

“Once or twice a year we make a big investment,” David Nicol, MPIC chief financial officer, said.

Among its latest acquisitions were a substantial stake in information technology firm Indra Philippines Inc. in 2015, and a 51-percent equity stake in Central Luzon Doctor’s Hospital in Tarlac in 2013.

Nicol noted, however, that the increase in its stake in Beacon was quite a substantial one, saying “these things don’t come along very often." – VDS, GMA News