PCEV core net income up 19%

MANILA, Philippines - PLDT Communications and Energy Ventures Inc (PCEV), formerly known as Pilipino Telephone Corp. (Piltel), said its core net income last year stood at P2.5 billion, a 19 percent growth from the P2.1 billion recorded in 2010. PCEV’s income was derived mainly from its direct equity share in the net income of Manila Electric Co. (Meralco) and its holdings in Beacon Electric Asset Holdings Inc.

PCEV owns 50 percent of Beacon, a special purpose company jointly owned by PCEV and Metro Pacific Investments Corp. (MPIC), whose sole purpose is to hold shares in Meralco. As of Dec. 31, 2011, Beacon beneficially owned 511.2 million shares, equivalent to a 45.4-percent interest in Meralco.

On Jan. 20, 2012, PCEV’s board of directors approved the subscription to 135 million Beacon common shares for a total consideration of P2.7 billion, with MPIC approving a similar subscription. On the same date, Beacon purchased 30 million common shares representing 2.7 percent equity interest in Meralco from the Lopez Group’s First Philippine Utilities Corp. (FPUC) at a cash price of P295 per share or a total consideration of P8.85 billion.