MANILA, Philippines – Shares of Manila Electric Co. soared Thursday to a record P176 each on upbeat earnings prospects ahead of the completion of Philippine Long Distance Telephone Co.’s purchase of a 20-percent stake in the country’s largest electric utility.

PLDT is set to complete the deal to buy the stake in Meralco from the Lopez family on July 14 for about P20 billion.

Just a year ago, Meralco shares were trading at less than P50 a share. Prices started climbing following the entry of San Miguel Corp. and PLDT as strategic investors.

About 1.56 million shares of Meralco worth P270.19 million changed hands at the local bourse, accounting for 12.27 percent of the value turnover yesterday.

At the close of trade Thursday, Meralco had a market capitalization of P188.42 billion. Some 29 percent of its outstanding stock is held by the public.

Dealers said the run-up was fueled by the company’s net rosy profit guidance of P13 to P15 billion this year versus only P3.1 billion last year.

“Investor sentiment on Meralco has changed. Prospects are better. There’s light at the end of the tunnel,” said Astro del Castillo, managing director at fund management firm First Grade Holdings.

“Basically, the entry of two giants helped energize the corporation given their influence and sense of corporate direction and also the different businesses that have opened that are complementary to Meralco,” Del Castillo said.

San Miguel gained a foothold in Meralco by buying out a 27-percent stake from the state-owned Government Service Insurance System last year for P90 a share, payable in three years.

PLDT, through wireless unit Pilipino Telephone Corp., agreed to buy the 20-percent block from the Lopezes at the same price of P90 a share but in upfront cash.

Earlier this year, its retirement fund PLDT Beneficiat Trust also bought shares equivalent to 10.2 percent of Meralco from the open market, consequently pushing Meralco’s share price above P100.

Meralco, meanwhile, has also bared plans to pilot-test the broadband over powerline technology, which if proven to be viable, can open up a large revenue stream by giving millions of households in Metro Manila cheaper broadband access by hooking up to their electric sockets.

Meralco treasurer Rafael Andrada also told the Philippine Stock Exchange that because of the implementation of the performance-based rate (PBR) adjustment effective May of this year, it was anticipating higher a net income this year.

“But given we are only six months into the current year, the final income figures would be driven by the effect of the prevailing economic conditions on sales volume,” said Andrada.