PLDT sells remaining stake in Meralco to MPIC

June 14, 2017

PLDT Inc. has sold its remaining stake in Manila Electric Co. (Meralco) to Metro Pacific Investments Corp. for P21.8 billion. PLDT told the stock exchange that PLDT Communications and Energy Ventures, Inc. entered into a share purchase agreement covering a sale of its remaining 25 percent equity interest in Beacon to MPIC. Beacon is a special purpose company  owned by PCEV and MPIC, which holds a 35 percent interest in Manila Electric Company and a 56 percent interest in Global Business Power Corp. PCEV’s interest in Meralco was 8.7 percent. MPIC will pay P12 billion in cash on closing, which is anticipated this month. The balance of P9.8 billion will be paid over the following four years. Upon completion, MPIC will own 45.5 percent interest in Meralco from 41.2 percent and in Global Business Power Corp. to 56 percent directly and 6.4 percent indirectly through Meralco. PCEV will no longer have any direct interest in Beacon and indirect interest in Meralco and Global Power. "The divestment of our Beacon investment will help the PLDT group focus on the key priorities in its core businesses. While the investment is now viewed as no longer strategic, it has nonetheless been a very financially satisfying one," Manuel Pangilinan, PCEV chairman and PLDT chief executive said. "Proceeds from the sale will be used principally to reduce debt and to fund the ongoing network upgrade and expansion," he added. PCEV had invested in Meralco and Beacon since 2009 an aggregate amount of about P24 billion. Over the years, PCEV received P14.7 billion in cash dividends and has completed its divestment for an aggregate consideration of P51.6 billion "The acquisition of PCEV’s remaining 25 percent in Beacon, at what I consider to be a very attractive entry price, means that for the first time we have no minority partner in our power portfolio holding company," Jose Ma. K. Lim, chief executive of MPIC said. "We are now free to accelerate our rate of participation in the Philippine power sector building on our nationwide presence as we embrace distribution, thermal generation, renewables and energy from waste," he added. DMS