MVP group says will limit stake in Meralco

BEEFING UP. The MVP group acquires more shares in power distributor Manila Electric Co. AFP PHOTO/Jay Directo

MANILA, Philippines – The Manuel V. Pangilinan group said it would limit the number of shares it would acquire in power distributor Manila Electric Co. (Meralco) to avoid having to conduct a tender offer.

Beacon Electric Asset Holdings Inc., jointly owned by Pangilinan-led firms Metro Pacific Investments Corp. and Philippine Long Distance Telephone Co., acquired 10 million Meralco shares from San Miguel Corp. at P270 each on Friday, July 19.

Beacon is the single largest shareholder of Meralco with a 48.3% stake.

Beacon told the Philippine Stock Exchange in a disclosure Monday, July 22 that it "will own less than 50%" of Meralco upon completion of the latest transaction.

Asked whether his group wants to beef up their interest in the power distributor to 51%, Pangilinan said, "something like that." He added, "we want to keep Meralco a listed company so we would prefer not to breach the limits on the requirement for a general offer."

Under the law, a group that acquires at least 35% of any listed company within a year is required to conduct a tender offer. This means the buyer must buy the remaining shares held by other investors at the same price as the original transaction.

As of July 22, Meralco has a market capitalization of P312.88 billion and 13.6% public float. – Rappler.com