Metro Pacific Investments Corporation to buy 5 percent of Meralco

MANILA, June 24 (PNA) — Metro Pacific Investments Corporation (MPIC) on Tuesday announced its intention to solely purchase the 5 percent stake in Meralco (Manila Electric Company) from their joint venture with PLDT Communications and Energy Ventures (PCEV) through Beacon Electric Asset Holdings Inc. (Beacon), based on a disclosure with the Philippine Stock Exchange (PSE).

The 5 percent hold on Meralco, composing of 56.35 million shares, was formerly owned by the two companies through Beacon, but is now being bought by MPIC at PHP 235 per share. The total 5 percent of the electricity provider amounts to PHP 13.24 billion.

”The deepening of our investment in Meralco is reflective of our expectation of growth in this business, especially from much needed power generation in Luzon,” said MPIC Chief Executive Officer (CEO) Jose Ma. K. Lim in a press release.

Lim also said that it would retain its partnership with PCEV through Beacon for most of the company’s investment in Meralco.

The MPIC stated that terms include an immediate payment of 3 billion PHP, which would be funded from the company’s internal sources, while the remaining balance is to be paid till February 2015.

However, the transaction does not prohibit MPIC from claiming its dividend from Beacon during the payment of the purchase.

With the said transaction, MPIC will own 27.48 percent of Meralco, comprising of their sole 5 percent share and their 22.48 percent share through Beacon.

Meanwhile, the MPIC explains that there will be no change in the interest of MPIC and Beacon in Meralco which is currently at 49.96 percent. (PNA)