Posted at 04/13/2011 12:50 AM | Updated as of 04/13/2011 2:17 PM
MANILA, Philippines - San Miguel Corp. (SMC) has started to consolidate its minority interest in Manila Electric Co. (Meralco) with another stake held by the group of former trade minister Roberto Ongpin.
At an investor’s briefing earlier this week, SMC said it now controls 33.2% of Meralco.
This is higher than the previously disclosed 27% interest that it acquired from the Government Service Insurance System (GSIS) in 2008, marking SMC’s entry into the utility.
Asked to clarify, SMC president Ramon S. Ang said the increase was the result of a stake consolidation. Ongpin, who is also behind SMC’s controlling shareholder, Top Frontier Investments Holdings Inc., is considered a business ally of Ang.
“When [ the consolidation is done ], our stake will rise to 37%,” Ang told reporters.
It was previously reported that Ongpin’s group controlled over 7% of Meralco, referring to shares acquired from government financial institutions Social Security System and Development Bank of the Philippines back in 2009.
At that time, the group was reportedly interested in another 3.8% Meralco stake held by Land Bank of the Philippines, which could not be sold due to an ownership dispute.
Ang declined to comment on whether SMC is interested in acquiring more shares of Meralco, which now has a market capitalization of P278.21 billion, or almost triple its value since SMC first entered.
SMC is not the only company consolidating its Meralco shares.
Perceived corporate rival First Pacific Co. Ltd, led by businessman Manuel V. Pangilinan, is also studying the transfer of a 6.1% Meralco stake held by its telecommunications unit to holding company Beacon Electric Asset Holdings Inc.
Beacon Electric, a 50-50 joint venture between the group’s infrastructure arm Metro Pacific Investments Corp. (MPIC) and PLDT Communications and Energy Ventures Inc. (PCEV), is already the utility’s single largest shareholder with a 34.8% interest following consolidation moves last year.
Once completed, Beacon Electric will own about 41% of the country’s biggest power distributor.
The potential ownership consolidation comes ahead of Meralco’s plan to venture into power generation, which is expected to cost up to $2.3 billion, involving the creation of 1,500 megawatts of capacity until 2016.
Meralco said earlier its net income rose 61% to P9.69 billion in 2010 as energy sales rose 10% on the back of higher consumption.
SMC and Top Frontier announced earlier this week a plan to raise $850 million selling common shares and convertible bonds. SMC will use proceeds to fund new investments while Top Frontier intends to pay off shareholder advances.
SMC declined for a second day, losing 4.38% to P153 each on Tuesday.
At an investor’s briefing earlier this week, SMC said it now controls 33.2% of Meralco.
This is higher than the previously disclosed 27% interest that it acquired from the Government Service Insurance System (GSIS) in 2008, marking SMC’s entry into the utility.
Asked to clarify, SMC president Ramon S. Ang said the increase was the result of a stake consolidation. Ongpin, who is also behind SMC’s controlling shareholder, Top Frontier Investments Holdings Inc., is considered a business ally of Ang.
“When [ the consolidation is done ], our stake will rise to 37%,” Ang told reporters.
It was previously reported that Ongpin’s group controlled over 7% of Meralco, referring to shares acquired from government financial institutions Social Security System and Development Bank of the Philippines back in 2009.
At that time, the group was reportedly interested in another 3.8% Meralco stake held by Land Bank of the Philippines, which could not be sold due to an ownership dispute.
Ang declined to comment on whether SMC is interested in acquiring more shares of Meralco, which now has a market capitalization of P278.21 billion, or almost triple its value since SMC first entered.
SMC is not the only company consolidating its Meralco shares.
Perceived corporate rival First Pacific Co. Ltd, led by businessman Manuel V. Pangilinan, is also studying the transfer of a 6.1% Meralco stake held by its telecommunications unit to holding company Beacon Electric Asset Holdings Inc.
Beacon Electric, a 50-50 joint venture between the group’s infrastructure arm Metro Pacific Investments Corp. (MPIC) and PLDT Communications and Energy Ventures Inc. (PCEV), is already the utility’s single largest shareholder with a 34.8% interest following consolidation moves last year.
Once completed, Beacon Electric will own about 41% of the country’s biggest power distributor.
The potential ownership consolidation comes ahead of Meralco’s plan to venture into power generation, which is expected to cost up to $2.3 billion, involving the creation of 1,500 megawatts of capacity until 2016.
Meralco said earlier its net income rose 61% to P9.69 billion in 2010 as energy sales rose 10% on the back of higher consumption.
SMC and Top Frontier announced earlier this week a plan to raise $850 million selling common shares and convertible bonds. SMC will use proceeds to fund new investments while Top Frontier intends to pay off shareholder advances.
SMC declined for a second day, losing 4.38% to P153 each on Tuesday.
No comments:
Post a Comment