Metro Pacific denies asset swap offer for SMC Meralco stake

MANILA, Philippines – Metro Pacific Investments Corp. (MPIC), the local flagship of Hong Kong-based conglomerate First Pacific Co. Ltd., yesterday said neither was it selling its tollroad and water distribution businesses nor swapping these assets in exchange for a higher stake in Manila Electric Co. (Meralco).

“MPIC denies offering to swap its interests in Maynilad Water Services Inc. and NLEX (North Luzon Expressway) in exchange for the Meralco shares owned by San Miguel Corp.,” the company told the Philippine Stock Exchange (PSE) in a disclosure.

In a statement, Manuel V. Pangilinan, chairman of both MPIC and Philippine Long Distance Telephone Co. (PLDT), said the group’s water and tollroad units are not for sale and that they intend to grow these assets over the long haul.

“Both Maynilad and the NLEX are key strategic investments for MPIC. They are not available for sale or for trade with other assets. It is fully our intention to grow and keep these assets in our portfolio for the long-term,” Pangilinan said.

MPIC holds 56.8 percent of Maynilad, a joint venture with the Consunji family’s DMCI Holdings Inc. Last year, it bought 67.1 percent of the Manila North Tollways Corp. which operates the NLEX for P12.3 billion.

Pangilinan’s statement was in response to news reports quoting San Miguel president Ramon S. Ang that the PLDT Group had offered to acquire the food and beverage giant’s 27 percent stake in Meralco through a swap of assets which include Maynilad and NLEX.

San Miguel, however, confirmed the news reports that came out Friday, eliciting confusion among investors and stock market observers and analysts.

In a luncheon hosted for the media Thursday, Ang said San Miguel was open to selling its shares in the country’s largest power distribution if offered a “spectacular price”

Ang said San Miguel and the PLDT Group remain in touch with one another, pointing out the good partnership they have developed.

MPIC is banking on its newly-acquired assets to boost its net income this year and further strengthen its bid to become a major infrastructure company in the country.

Aside from water and tollways, MPIC also has investments in real estate and eventually power distribution, ports and harbors.