Hong Kong firm acquires 6% of Metro Pacific

MANILA, Philippines - Foreign investment firm Invesco Hong Kong Ltd. has acquired a six-percent stake in Metro Pacific Investments Corp., (MPIC) the local flagship of the Hong Kong-based conglomerate First Pacific Co. Ltd.

In a beneficial ownership report filed with the Philippine Stock Exchange, Invesco said it has acquired a total of 565,041 shares of MPIC, representing six percent of the investment holding firm.

With $388.6 billion in assets under management as of end-June this year, Invesco is a leading independent global investment management company, dedicated to helping people worldwide build their financial security. It provides a comprehensive array of enduring investment solutions for retail, institutional and high net worth clients around the world.

Operating in 20 countries, Invesco is listed on the New York Stock Exchange (NYSE). With 5,084 employees in 55 offices worldwide, Invesco has a significant presence in the institutional and retail markets across North America, Europe and Asia-Pacific.

MPIC successfully raised $300 million recently through a share offering which is believed to be the largest equity capital market transaction out of the Philippines since 2007.

MPIC has set aside up to P7 billion of total proceeds of the offering for cash acquisition costs of the 148.35 million common shares of power utility Meralco to be acquired from the Beneficial Trust Fund of Philippine Long Distance Telephone Co. and Crogan Ltd.

Another P4.8 billion has been allotted for repayment of short-term borrowings, which were made mainly to cover the purchase of Meralco shares in open market purchases.

The remaining proceeds from the sale will go to Metro Manila Skyway System, an elevated highway crossing over of the existing South Luzon Expressway.

MPIC president Jose Ma. K. Lim earlier said the actual allocation of the net proceeds will depend on various factors including the consummation of the acquisitions of common shares of Meralco, MPIC’s proposed investment in the Skyway project, market conditions, the availability of suitable opportunities, the timing of regulatory approvals and other factors.

Lim said MPIC could use the net proceeds to invest in other infrastructure projects or assets in the Philippines or for general corporate purposes.

First Pacific, through MPIC, Philippine Long Distance Telephone Co. and other local affiliates, has accumulated around 34.7 percent in Meralco and is looking to acquire more shares of the country’s largest power utility firm as it positions itself as a strategic shareholder with appropriate board and management participation.