Latest Stories

MVP group raises Meralco stake to 53.34%

Acquiring shares sold by San Miguel camp for P17B

By ,

The group of businessman Manuel V. Pangilinan (shown in photo) is working to acquire a majority stake in Manila Electric Co. by acquiring an additional 5-percent interest in the country’s biggest power distributor out of the block recently unloaded by San Miguel Corp. INQUIRER FILE PHOTO

MANILA, Philippines—The group of businessman Manuel V. Pangilinan is working to acquire a majority stake in Manila Electric Co. by acquiring an additional 5-percent interest in the country’s biggest power distributor out of the block recently unloaded by San Miguel Corp.

An initial 5.7-percent block in Meralco was sold last Friday by SMC at P270 a share or about P17.4 billion to various investors that included the MVP group. However, the MVP group’s goal was to buy an additional 5 percent out of SMC’s ongoing divestment, an Inquirer source said.

Computed against previous ownership levels, such a transaction will bring the combined direct and indirect stake of the MVP group in Meralco to 53.34 percent, breaching majority, while conglomerate San Miguel Corp.’s interest has been reduced to 27.1 percent.

Prior to this transaction, the MVP group, through Beacon Electric Asset Holdings Inc., held an indirect interest of 48.34 percent in Meralco as of end-June. But as the group votes as a bloc in alliance with the Lopez family, MVP has been exercising a controlling interest in the utility.

Beacon, a joint venture between Metro Pacific Investments Corp. and Philippine Long Distance Telephone Co. subsidiary PLDT Communications and Energy Ventures Inc., was created to hold the shares in Meralco that were mostly bought from the Lopezes, allowing Pangilinan’s group to consolidate investments in a sector believed to have a significant growth potential as the Philippine economy grows.

The source said most of the acquisition was made through Beacon and that this exercise would not trigger a tender offer requirement. But beyond the additional stake, the source from the MVP group said there was no plan to further increase its interest in Meralco.

Several sources familiar with the transaction also said the state-owned Government Service Insurance System had participated in last Friday’s placement, thereby acquiring additional shares in Meralco.

Industry sources said the pension fund wanted to come back as a passive investor in Meralco on more upbeat prospects on earnings and the management of the utility. Under the disclosure rules, changes in beneficial ownership not exceeding 5 percent of a listed company do not have to be disclosed immediately although these will eventually be reflected in the regular reporting on public ownership.

Prior to Friday’s placement, the GSIS held 628,590 shares in Meralco, based on the latest ownership report.

The GSIS, under the previous administration, was among those that had sold shares in 2009 that allowed SMC and its allies to come in at P90 a share. But since then, the GSIS, challenged by declining asset yields in a record-low interest rate environment, has again been loading up on equities as part of its trading portfolio.

Meanwhile, SMC said the sale of a portion of its stake in Meralco was made to take advantage of the current stock price of the power distributor, given the present volatility of the equities market.

In an e-mail to the Inquirer, SMC president Ramon Ang said the sale at P270 a share yielded hefty gains for the conglomerate, which acquired its Meralco stake at an average P90 a share. “We plan to reinvest the proceeds in higher yielding investments,” he said, pointing to SMC’s projects in the power and infrastructure sectors.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: acquisition , Manila Electric Co. , Manuel V. Pangilinan , Meralco , mvp group , Philippines , San Miguel Corp.

  • desi derata

    Selling then buying, sino ba ang nilloloko ni Pangilinan.
    Ibinenta ng mahal at bumili ng basement bargain price. Talagang naturuan ni Ongpin ng kawalanghiyaan.

  • Guest

    Napilitan din si RSA ibenta yun last week. Nabuking.

  • Jun Manacsa

    and the rich becomes richer… simply by manipulating the market…

  • tanga_hanga_ni_abnoy

    binenta ng gsis ng 90 tas binili uli sa 270? kagaling naman

  • Pablo Juan

    expect electricity charges to go up.. hay..

  • http://www.personalfinanceapprentice.com/ Carlos PFA

    MVP practically owns Meralco.

    Meanwhile, GSIS which sold meralco at 90 per share to SMC and Beacon (MVP’s group), just bought into the company again at 270.

    It’ll still go up, but when the bear hits it’ll probably go down below 270 – but definitely not below 90.

    MVP = 1; GSIS = 0

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • 12 dead, 96 injured in Holy Week accidents–NDRRMC
  • Filipino devotees re-enact crucifixion of Christ
  • Rouhani talks peace, outreach at army parade
  • Rains, thunderstorms on Good Friday
  • Carbon monoxide leak suffocates 20 in Catbalogan City
  • Sports

  • Heat seek Three-peat but Spurs, Pacers top seeds
  • Can Spurs get back at Heat? Can they survive West?
  • Hopkins, 49, seeks win for the ageless
  • LeBron still No. 1 with NBA’s most popular jersey
  • Pacquiao back in PH, heads home to wife, kids
  • Lifestyle

  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • Entertainment

  • ‘X-men’ filmmaker slams ‘fabricated’ sex attack claims
  • Singer Chris Brown’s bodyguard on trial in DC
  • Whoopi Goldberg debuts as marijuana columnist
  • ‘X-men’ director accused of sex assault on teen boy
  • Cannes film festival launches race for 2014 Palme d’Or
  • Business

  • Italy sells luxury state cars on eBay
  • Asian shares mostly up in quiet trade
  • Dollar up in Asia on US jobs data, Ukraine deal
  • Barbie doll has a problem
  • Oil prices mixed ahead of long Easter weekend
  • Technology

  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Filipinos #PrayForSouthKorea
  • Taylor Swift tries video blogging, crashes into fan’s bridal shower
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • WHO warns vs spread of MERS-Cov, urges vigilance in taking precautions
  • Last call for nominations to ’14 Presidential Awards
  • San Francisco business coalition slams proposed tax on sugary drinks
  • A ‘time-travel’ production of ‘Les Miserable’ at Stanford
  • Filipina Maryknoll sister honored for years of service
  • Marketplace