NG to dispose of Meralco shares this year

By Donnabelle L. Gatdula
The Philippine Star 02/26/2007

 

The National Government (NG) will dispose of its Manila Electric Co. (Meralco) shares this year, Finance Secretary Margarito Teves said over the weekend.

Teves told reporters that the disposal scheme of Meralco shares would be discussed soon.

"I will meet with government stakeholders (Government Service Insurance System, Social Security System). We will schedule it probably by the end of the month," he said.

According to the finance chief, they have yet to determine how much shares would be sold.

"If we can get a consensus, we will discuss it (how much shares will be disposed of by the government) in the meeting," he said.

The government, he said, would allow any bidder including the Lopez group.

Teves, however, said that the Lopezez "may not have the resources to buy the government shares in the power utility firm.

"Like any shareholders, anybody has the right to bid. But it depends on who can meet the right prices," Teves said. "I don’t know if they (Meralco) have the resources to go for the bidding."

Early this year, the government, through the Department of Finance (DOF) had announced plans to push through with the selling of its Meralco shares.

It has been NG’s thrust to privatize its stakes in utility companies to raise more revenues to bridge its budget gap.

This year, NG is projecting to generate some P25.7 billion from its privatization efforts including the proceeds from the successful sale of its indirect stake in Philippine Long Distance Telephone Co. (PLDT).

The Privatization and Management Office of the DOF has said that government intends to dispose of some 12.03 percent of Meralco’s total shares, equivalent to 212,120,855 shares.

At present, the government holds about 29 percent in Meralco; Lopez’s First Philippine Holdings Corp. owns 14 percent; Spanish power firm Union Fenosa corners nine percent; and the remaining shares are being held by the public and other investors.

For the first time in seven years, Meralco declared a P1 per share dividend last Feb. 5 to its common stockholders of record as of Jan. 10.

 

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