Meralco chief finance officer Daniel Tagaza said specifically, the company would be issuing 162 million new common shares at P10 per share.
At present, the company has an authorized capital of 1.08 billion shares at par value of P10 or P10.8 billion. If the increase will be approved the ACS will now amount to P12.42 billion.
The power distribution firm, Tagaza said, is still awaiting the decision of the Energy Regulatory Commission (ERC) on the 30-centavo rate hike petition before they could declare a stock dividend to its shareholders.
Meralco filed a rate hike petition with the ERC in April 1999. Up to now, the ERC has yet to decide on the rate increase application.
The last time the company issued a stock dividend was in 2000. It declared at 20-percent stock bonus to stockholders. In 1998 and 1999, the power firm also did not have stock declaration.
As this developed, Meralco president Jesus Francisco said the company has set up at least five new subsidiaries to complement its power distribution business in preparation for a restructured power industry.
Meralco chairman Manuel Lopez said the power firm has invested a total of about P30 million for these new business arms. "We decided to put up related businesses to enhance our operations," Lopez said.
The new subsidiaries include: Meralco Energy Inc. (MEI), E-Meralco Ventures Inc. (e-MVI), Asian Center for Energy Management (ACEM), MMLDC Foundation Inc., and Meraldo Financial Services Corp. (Finserve).
MEI is engaged in extending energy-related services beyond the customer’s metering such as energy management business, offering testing, troubleshooting and repair services as well as supply and installation of major electrical equipment. It has an unaudited revenues of P47 million as of end-December 2001.
e-MVI plans to provide communication and integrated direct marketing services this year. At present, e-MVI studies and developed several businesses in the new economy value chain such fiber optics, direct marketing, e-procurement, e-bills, presentment and payment and power line communications.
ACEM will engage in intensive policy research and studies on communication technology while the MMLDC will provide world-class training and development activities.
As part of the company’s aggressive stance to diversify its operation in other non-power related businesses, Meralco’s Finserve has tied up with Union Bank for a credit card business.
The tie-up will pave the way for the launching of the "Lumina" Visa card, "the anti-stress credit card."
The credit card will provide an automatic auto debit program which allows hassle-free payments on utility bills such as electricity, water, phone and cable bills.
The payment program will also provide a "no electric disconnection guarantee" and electric bill insurance (cardholders will get free insurance coverage on their electric bills. In case of death or disability due to accident, insurance will cover up to 12 months of cardholder’s electric bills).
The Lumina credit card will also give a one-percent rebate on cardholder’s electricity bills.