JG Summit completes buyout of SMC stake in Meralco

AFP FILE PHOTO

MANILA, Philippines—The Gokongwei group has completed its buyout of the San Miguel group’s 27-percent stake in Manila Electric Co., the country’s largest power distribution firm, for P72 billion.

The transaction translated to an acquisition of Meralco shares for P235 apiece. It involved about 305.69 million shares, which were crossed through the Philippine Stock Exchange on Wednesday.

JG Summit Holdings and San Miguel Corp. separately reported the completion of the transaction to the Philippine Stock Exchange.

The Meralco shares were unloaded by SMC, and units San Miguel Pure Foods Company Inc. and SMC Global Power Holdings Corp.

In October, JG Summit agreed to pay P72 billion for the Meralco block. It has since embarked on a number of equity and debt funding deals to fund the acquisition.

The transaction boosts the partnership between the Gokongwei group and First Pacific of Hong Kong led by businessman Manuel V. Pangilinan, which now holds the controlling stake in Meralco.

The Pangilinan and Gokongwei groups are likewise partners in the telecommunications business, after the latter ceded its stake in Digital Telecommunications, operator of the Sun Cellular brand, in exchange for a minority stake in Philippine Long Distance Telephone Co.

SMC, for its part, unloaded its 27 percent stake in Meralco to focus on other business. Over the years, the conglomerate has diversified from its traditional food and beverage businesses to power generation, banking, telecommunications, mining, airline and other infrastructure investments.—Doris C. Dumlao