MANILA, Philippines - Metro Pacific Investments Corp. (MPIC) has issued P2.016 billion worth of shares to Metro Pacific Holdings Inc. (MPHI) as payment for the latter’s advances.
In its disclosure to the Philippine Stock Exchange, MPIC said it will issue up to 672.13 million common shares in favor of MPHI at P3 each share, to be taken out from the unissued capital or from the increase in MPIC’s authorized capital stock.
MPIC successfully raised $300 million through a share offering which the company intends to use to partly fund the acquisition of shares in Manila Electric Co. held by the Beneficial Trust Fund of Philippine Long Distance Telephone Co. and Crogan Ltd.
Around P4.8 billion of the proceeds will be used for the repayment of short-term borrowings, which were made mainly to cover the purchase of Meralco shares in the open market.
The remaining proceeds from the sale will go to the Metro Manila Skyway System, an elevated highway crossing over the 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 completion of the acquisitions of the 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.
Hong Kong-based conglomerate First Pacific, through its Philippine units MPIC, Philippine Long Distance Telephone Co. and other local affiliates, has accumulated around 34.7 percent interest 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.