PLDT eyes deal to sell Meralco stake by end June

PLDT, INC. is hopeful it will complete the sale of its remaining 8.74% stake in Manila Electric Co. (Meralco) by end June, according to Manuel V. Pangilinan, who chairs both companies.

“There’s a decent chance that we can close it in the first half, by June 30. That’s our target. But it takes two to tango. So we can’t impose it on the buyer,” Mr. Pangilinan said on the sidelines of Meralco’s first-quarter financial briefing on Monday.

PLDT owns a 25% stake in Beacon Electric Asset Holdings, Inc., which in turn owns 35% of Meralco.

“The sale of Meralco shares is really being undertaken by PLDT,” said Mr. Pangilinan, who is also president and chief executive officer of PLDT.

“At the moment, I think PLDT is in the process of talking to some of the investors in the sale of their stake at the Beacon level. That’s where it is today, and if there is an agreement reached, we will make an announcement. The discussions are with potential investors that are not group-related,” he added.

Mr. Pangilinan announced the plan to divest from Meralco in August last year, with the proceeds to fund part of PLDT’s capital spending and reduce debts.

“But the bulk of it will be used to reduce debt. Because we want to bring back net debt to around two times by yearend 2017,” he said.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by Philippine Long Distance Telephone Co. (PLDT).

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