SMC selling part of its Meralco shares to food firm

MANILA, Philippines—Power-based conglomerate San Miguel Corp. is selling a 5.2 percent stake in power retailer Manila Electric Co. to its food unit San Miguel Pure Foods Co. for about P13 billion.

Also approved by the board was the preparation for its power unit SMC Global Power Holdings Corp. to undertake an initial public offering within the year, the company disclosed on Friday.

The SMC board agreed to sell 59.09 million of the company’s shares in Pure Foods for P220 per share. “The shares sold by the company to SMPFC form part of the shares bought from the Government Service Insurance System,” the SMC disclosure said.

This implies that SMC will still keep 21.8 percent out of its 27 percent reported stake in Meralco.

The conglomerate earlier acquired this Meralco block from the GSIS for P90 per share over a three-year repayment period that was completed recently.  Effective cost including interest amounted to about P100 per share, based on industry estimates.