Two conglomerates are shying away from the sale of Philippine Long Distance Co.’s interest in power retailer Manila Electric Co. held by Beacon Electric Assets Holdings Inc.
Officials of DMCI Holdings Inc. of the Consunjij Group and AC Energy Holdings Inc. owned by Ayala Corp. said they were not keen on acquiring Beacon’s interest, which PLDT plans to divest in the first half of 2017.
PLDT has an 8.7-percent interest in Meralco through Beacon, which was valued last year at around “north of P26.2 billion.” Beacon is a special purpose company owned jointly by Metro Pacific Investments Corp. and PLDT Communications and Energy Ventures Inc.
“We have more than enough projects moving forward,” DMCI Holdings chairman Isidro Consunji said.
AC Energy president John Eric Francia said the sale “is not within our radar.”
Meralco president Oscar Reyes said the sale involved a portion of Beacon’s stake in Meralco.
“Definitely it will be sold to an outsider but I’m not to privy,” Reyes said, adding the sale would not have an impact on the company’s plans.
“It will not be sold within the group,” the Meralco official said.
Meralco shares are owned by Beacon, JG Summit Holdings Inc. and Metro Pacific and the public.
Meralco and PLDT chairman Manuel Pangilinan announced early this month plans to sell PLDT’s stake in Beacon, adding that there were “serious” talks with potential buyers.
Pangilinan said there were “serious discussions with two potential buyers” with the sale expected to be closed in the first half.
Pangilinan said in August last year the company was in discussion with a number of interested investors for the sale of Beacon’s shares.
Meralco is the country’s biggest power distributor with over six million customers in its franchise area.
It plans to sign up an additional 250 megawatts to 300 MW of interim power supply agreements to ensure adequate power during the dry months.
“We’re trying to work out another supply agreement, about 150 MW to 200 but we’re talking to another, for summer… Then may be another 100 MW, “ Reyes said.
He said the supply agreements, which could go up to July, would have to go through a competitive selection process.
“We have to (undergo CSP). Because it’s for summer, hopefully approvals will come in because it’s going to give assurance of better supply at very competitive prices,” Reyes said.
Meralco regularly secures interim power supply agreements when the supply is tight and demand is high.
The Energy Department expects supply in the Luzon grid to become tight in May.
Energy Undersecretary Felix William Fuentebella, however, assured that while power supply might be lower in some weeks, there would no yellow alerts or brownouts.
Fuentebella said power supply could start to dip during the week of April 22 to 28 and up to the week of June 3 to 9.