MPIC buys 24.95% Meralco stake in tech firm Indra PH

INFRASTRUCTURE holding firm Metro Pacific Investments Corp. (MPIC) has purchased the 24.95 percent stake of Manila Electric Co. in the Philippine unit of Spanish information technology conglomerate, Indra Sistemas S.A.

The 24.95 percent stake was purchased for P326.52 million.

The acquisition of 84,012 common shares in Indra Philippines Inc. is in line with plans to “commercialize” the expertise the technology firm developed in handling big-ticket projects for MPIC, the company told the Philippine Stock Exchange on Thursday.

“This will be a modest investment for MPIC [which is] expected to yield strong returns [from] serving business and government sectors that MPIC is already familiar with,” the firm said in its disclosure.

It said the purchase would benefit the company since Indra is also aiming to expand its business in the country and Southeast Asia.

Indra Sistemas has international knowledge, experience and track record in the information technology business. The local unit, which has been operating in the Philippines for the past 18 years, is one of the leading provider of information technology solutions to various businesses and industries in the Philippines, with engagements in utilities and telecommunications, financial services and public administration.

Indra has also worked on a number of large systems projects for various MPIC portfolio companies.

The MPIC group is expected to maximize Indra’s expertise to support its move to expand to other markets in the region. The group has existing investments in Thailand, Vietnam, Singapore and Nigeria and is scouting for more opportunities.

The MPIC group has an interest in Thai toll road operator, Don Muang Tollway Public Ltd (DMT), which operates the 21.9-kilometer six-lane elevated toll road from central Bangkok to Don Muang International Airport and the National Monument in the north of Bangkok.  In Vietnam, the group has investments in CII Bridges and Roads Investment Joint Stock Co. (CII B&R).

In Singapore, Meralco has an interest in PacificLight Power, an energy firm running the 800-megawatt liquefied petroleum gas-fired plant in Jurong Island.  Meralco also gained foothold in Africa as part of a consortium that bagged crucial deals to take over two electricity distribution firms privatized by the Federal Republic of Nigeria.