Meralco stocks surge to record P205

MANILA, Philippines - Shares of power utility giant Manila Electric Co. surged to another record high yesterday, rising 3.5 percent on speculations the San Miguel bloc may eventually sell out, triggering a tender offer for minority investors.

Meralco stocks closed at P205 each yesterday or P7 higher from its previous close of P198 per share. A total of 1.35 million shares changed hands valued at P272.46 million.

Under the securities law, any group or person who intends to acquire 35 percent of a publicly held company within a one-year period or a 15-percent stake in a single transaction should make a tender offer to purchase the shares of the remaining shareholders of the publicly-listed company at the same price.

San Miguel president Ramon S. Ang earlier told reporters that the diversifying conglomerate was open to the possible divestment of its shares in the power utility giant. Ang, however, stressed that San Miguel remains committed to Meralco and that there are no plans to sell it unless it is offered a spectacular price.

Any proposal, however, would be subject to the approval of the board of San Miguel, Ang said.

“We are not a seller. Hypothetically, if we’re offered a spectacular price like P500 per share, I would be crazy not to recommend it to the board,” Ang earlier said.

Earlier reports said the PLDT Group, led by telecommunications magnate Manuel V. Pangilinan, had offered to acquire San Miguel’s 27- percent stake in Meralco through a swap of assets which include the Metro Pacific Tollways Corp., which controls the North Luzon Expressway (NLEX) and Metro Manila West Zone water concessionnaire Maynilad Water Services Inc.

This, however, was flatly denied by Pangilinan.

Ang said the swap proposal came even before Meralco held its annual shareholders’ meeting last May 26.

PLDT and its affiliates, which currently own around 34 percent of Meralco, are interested in raising their stake in the power utility giant should there be a proposal on the table. The Lopez family, which used to control Meralco for decades said, still holds 13.4 percent interest.

The Lopez Group sold 20 percent of its 33.4 percent shareholdings in Meralco to the PLDT Group to allow it to pay down debts.