MPIC to hold 100% stake in Beacon, increasing shares in Meralco, Global Power

June 14, 2017 - 4:19 PM
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Metro Pacific's logo. FROM BUSINESSWORLDONLINE

MANILA – Metro Pacific Investments Corp. (MPIC) is acquiring 25 percent of PLDT Communications and Energy Ventures’ (PCEV) shares in Beacon Electric Asset Holdings.

In a Philippine Stock Exchange disclosure, MPIC stated it entered into a Sale and Purchase Agreement with PCEV to buy the remaining 25-percent stake of the latter in Beacon Electric for P21.8 billion.

MPIC will pay P12 billion in cash and the balance of P9.8 billion will be paid over the next four years.
In May 2016, MPIC bought 25 percent of PCEV in Beacon Electric, which hiked MPIC’s shares in Beacon to 75 percent.

Upon completion of the new 25-percent acquisition deal, MPIC will now have 100 percent interest in Beacon Electric.
Beacon Electric owns 35 percent of the country’s largest electricity distributor, Manila Electric Company (Meralco), and also owns 56 percent in the leading power generation firm in Visayas — Global Business Power Corp.

“PCEV will no longer have any direct interest in Beacon, or any indirect interest in Meralco or Global Power,” MPIC noted.

“I am pleased to announce this rationalization and simplification of our power investments. The acquisition of PCEV’s remaining 25 percent in Beacon, at what I consider to be a very attractive entry price, means that for the first time we have no minority partner in our power portfolio holding company,” MPIC Chief Executive Officer Jose Ma. Lim said.

“We are now free to accelerate our rate of participation in the Philippine power sector building on our nationwide presence as we embrace distribution, thermal generation, renewables and energy from waste. The transactions announced today are also immediately accretive to earnings,” he added.

MPIC has 10.5 percent direct stake in Meralco. With its deal with PCEV, it will also acquire 35 percent of Beacon’s stake in Meralco. MPIC will hold 45.5 percent share in Meralco from its current 41.2 percent stake.

MPIC has direct interest of 56 percent in Global Power and indirect share of 6.4 percent through Meralco. The acquisition deal will hike MPIC’s stake in Global Power from 47.8 percent to 62.4 percent.