PLDT plans to sell 8.74% Meralco stake

The Philippine Long Distance Telephone Co. (PLDT) is in talks with an unnamed foreign group to sell its remaining 8.74 per cent stake in the Manila Electric Co. (Meralco) and expects to divest its shares within the first half of next year, PLDT Chairman and CEO Manuel V. Pangilinan told reporters yesterday.

PLDT’s investment in the country’s largest distributor of electricity, via Beacon Electric Asset Holdings, Inc., is seven years old todate, and “ripe” to be recouped as fund-raising for its benefit.

In 2009, PLDT, via Beacon, owned 17.48 percent of Meralco while infrastructure and tollways conglomerate Metro Pacific Investments Corp. (MPIC), the holding firm of PLDT’s parent company, First Pacific, owned 32.48 percent.

This May 30, PLDT Communications and Energy Ventures Inc. (PCEV) sold 50 per cent of its equity interest in Beacon for R26.2 billion to MPIC.

As a result of the sale, PCEV, received R17 billion cash upon closing, with the R9.2 billion balance to be paid in installments till June, 2020.

In all, PCEV recognized a net gain of R7.4 billion.

Of the total R17-billion PCEV received, it declared R13.5 billion as dividends and proceeds were used for PLDT’s acquisition of San Miguel Corporation (SMC)’s telco assets.

PCEV also used R3.5 billion to subscribe to Beacon shares and acquire 56 per cent of the issued share capital of Global Business Power, Inc.’s through Beacon Powergen Holdings, Inc.

This was after MPIC and George Ty-owned GT Capital Holdings, Inc. forged a strategic alliance so MPIC could acquire a 56 percent stake in GT Capital’s Global Business Power Inc. via MPIC affiliate Beacon. (EVA)