MVP, RSA close P2.19 billion Meralco deal

MANILA, Philippines — Tycoon Manuel V. Pangilinan has secured another piece of Manila Electric Co. (Meralco), completing a P2.19-billion share purchase from Ramon Ang’s San Miguel Group out of his own pocket.

San Miguel Global Power Holdings Corp. (SMGP), the power arm of conglomerate San Miguel Corp., closed the sale of about 3.77 million Meralco shares to Pangilinan at P580.99 apiece.

The transaction was executed through a special block sale at the Philippine Stock Exchange on Oct. 9.

Pangilinan, who chairs Meralco, raised his shareholding in the country’s largest power utility to 0.34 percent following the deal.

The acquisition forms part of the Pangilinan Group’s efforts to further strengthen its hold on Meralco, whose vast franchise covers Metro Manila and nearby provinces.

Last week, Pangilinan-led Metro Pacific Investments Corp. (MPIC) acquired P12.4 billion worth of Meralco shares from SMGP, increasing its stake in the utility to 49.4 percent from 47.46 percent.

“I would view the acquisition as a strong expression of confidence in Meralco’s long-term strategic value,” Globalinks Securities and Stocks Inc. head of sales trading Toby Allan Arce said when asked for insights.

For SMGP, Arce viewed the transaction as a move to rationalize its portfolio and recycle capital.

“MPIC is increasing its exposure to an asset it clearly considers core, while San Miguel is realizing substantial value from a minority investment and freeing up capital for other priorities,” he said.

MPIC is a diversified conglomerate whose interests span power, toll roads, water, health care, real estate, light rail and agribusiness, while SMGP is the country’s second-largest power producer.