Lopez Holdings income drops 70% to P3.9B

MANILA, Philippines - Lopez Holdings Inc., the listed investment vehicle of the Lopez family that owns media empire ABS-CBN Broadcasting Corp., posted a net income of P3.9 billion last year, down 70 percent from P13.2 billion as one-time gains on the sale of Manila Electric Co. (Meralco) shares propped up its net earnings in 2010.

Its energy unit First Philippine Holdings Corp., also disclosed to the Philippine Stock Exchange yesterday that its net profit amounted to P2.1 billion in 2011 as against P24.85 billion, which included gains on the sale of a portion of its investment in Meralco of P23.56 billion.

Lopez Holdings did not disclose other details of its financial operations.

In January, the Lopez Group, through wholly-owned unit First Philippine Utilities Corp., sold an additional 2.66 percent stake in Meralco (equivalent to 30 million shares) for P8.85 billion.

The shares were transferred to Beacon Electric Asset Holdings Inc., leaving the group with a 3.9 percent stake in the power utility giant.

The acquisition raised Beacon’s beneficial interest in Meralco to 28.02 percent from 45.36 percent.

Beacon is the joint venture company of Metro Pacific Investments Corp. and Philippine Long Distance Telephone Co.

The Lopez Group, however, continues to retain a seat in Meralco after the transaction is completed, as a result of an amendment in its cooperation agreement signed last March 30, 2010 with MPIC.

By ZINNIA B. DELA PEÑA