Manila–(PHStocks)–PLDT Communications and Energy Ventures Inc. (PCEV), today announced the Beacon Electric Asset Holdings Inc. (Beacon), a special purpose company jointly owned by PCEV and Metro Pacific Investments Corp. (MPIC, PSE: MPI), will sell 56.35 million shares, comprising approximately 5%, in Manila Electric Co. (Meralco, PSE: MER), to MPIC at a price of PhP235 per share for an aggregate consideration of PhP13.24 billion. The consideration payable by MPIC to Beacon will be settled as to PhP3 billion immediately and the balance on or before February 2015.
Upon completion, PCEV’s interest in Meralco will be reduced to an effective interest of 22.48%. MPIC will own 5% in Meralco directly and, through Beacon, a further 22.48%, thereby taking its effective interest in Meralco to 27.48%. There will be no change in the aggregate, joint interest of MPIC and Beacon in Meralco, which remains at 49.96%.
“The PLDT group regularly reviews its portfolio of businesses and we saw this as an opportunity for PLDT to realize an attractive return while maintaining its strong partnership with MPIC in a key investment. Meralco continues to be an important component of our strategic assets with a stable dividend yield and good prospects for growth,” said Napoleon L. Nazareno, PCEV Chairman and PLDT CEO.
PCEV is a holding company owned 99.84% by Smart Communications Inc., whose primary asset is its holding in Meralco, now held indirectly through Beacon.