First Pacific hikes stake in Meralco to 45%

MANILA, Philippines—The First Pacific group has cemented its position as the single largest voting bloc in Manila Electric Co. with the purchase of a 4-percent additional stake in the utility, an acquisition backed by an P11-billion credit facility.

In a disclosure to the Philippine Stock Exchange on Tuesday, Metro Pacific Investments Corp. president Jose Ma. Lim said this additional acquisition would bring the group’s stake through Beacon Electric Asset Holdings Inc. to 38.8 percent. Together with the direct stake held by another affiliate, PLDT Communications and Energy Ventures, the group’s total interest in Meralco has been raised to 45 percent.

An P11-billion credit facility to fund the acquisition was arranged by local investment banks First Metro Investment Corp. and PNB Capital & Investment Corp., the disclosure said.

The selling party was not disclosed.

“I am pleased that our shareholders will gain increased participation in the benefits of the hard work being put in by all the Meralco management to further enhance the business,” said Manuel V. Pangilinan, chairman of both MPIC and PCEV.

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