San Miguel Corp., through power generation arm San Miguel Global Power HIldings Corp., acquired a 3.8- percent stake in power retailer Manila Electric Co. (Meralco) from Land Bank of the Philippines for about P3.9 billion, a deal consummated after 17 years.
SMC president and chief executive Ramon Ang confirmed in a text message that the company acquired Meralco shares from Land Bank of the Philippines. The deal was transacted via special block sale through the stock exchange.
Data from the Philippine Stock Exchange showed that 43.23 million Meralco shares were sold at P90 per share, a steep discount versus Meralco’s closing price of P540 apiece on Tuesday.
Based on current market price, the 43.23 million shares are worth P23.4 billion.
“Such shares were transacted in the Philippine Stock Exchange this morning thru the deeds of absolute sale which contained the terms and conditions mutually determined by and acceptable to both parties and conformably with the decision of the Court of Appeals,” said SMC in a disclosure to the stock exchange.
Regina Capital Development Corp. head of sales Luis Limlingan said SMC could use the investment as bargaining chip for future partnership or joint venture with Meralco.
The shares acquired by SMC is related to the 2008 transaction where Land Bank of the Philippines agreed to sell its 46,596,596 shares of stock in Meralco to SMC.
Meralco’s major shareholders include Metro Pacific Investments Corp. and JG Summit Holdings Inc.
