Infrastructure giant Metro Pacific Investments Corp. (MPIC) is acquiring an additional 1.9-percent stake in Manila Electric Co. (Meralco) from San Miguel Corp. (SMC) for P12.4 billion, a move reflecting the Pangilinan Group’s bullishness in the power utility.
The group at Meralco’s helm said it had inked an agreement with SMC’s energy arm, San Miguel Global Power Holdings Corp. (SMGP), for the acquisition of 21.4 million shares priced at P580.99 apiece, way higher than the P90 price tag SMGP settled in 2025.
Once the transaction has been sealed, MPIC’s direct and indirect shareholding interest in Meralco will increase to 49.4 percent from the current 47.5 percent.
MPIC, which has interests in power, toll roads, water and healthcare, said it intends to fund the acquisition through a combination of internally generated cash and financing.
The deal remains subject to conditions, including the approval of the Philippine Stock Exchange of the special block sale.
‘The transaction represents an increase in MPIC’s effective interests in Meralco and reflects MPIC’s continued confidence in Meralco’s long-term growth prospects and strategic importance to the group,’ it said.
In July last year, SMGP secured P23 billion worth of shares of the utility giant for just P3.89 billion after winning a court dispute that compelled the state-controlled Land Bank of the Philippines to sell based on 17-year-old terms.
Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., said this decision has shown that the Pangilinan Group ‘remains very confident in the future of Meralco’ despite uncertainty about the controversial system loss charges.
‘For San Miguel, it’s an opportunity to monetize a portion of its minority stake at more than six times the original purchase price of P90 per share,’ Colet said.
Toby Allan Arce, head of sales trading at Globalinks Securities and Stocks Inc., also described the sale as a ‘sensible capital-allocation move’ for the Ramon Ang-led group.