first-philippine-holdings-to-sell-67-meralco-stake-to-metro-pacific

First Philippine Holdings to sell 6.7% Meralco stake to Metro Pacific

Metro Pacific Investments uses a right of first refusal to match the valuation of a bid by Henry Sy Jr that would have given the San Miguel group and its allies absolute control of Meralco.

First Philippine Holdings FPH decided last night, after an extended board meeting, to accept Metro Pacific Investments' MPI counter bid for a 6.7% stake in Manila Electric Company Meralco at a total cost of Ps22.4 billion $470 million.

MPI used a right of first refusal to match, on a per share basis, a bid for FPH's entire 13.4% stake in Meralco made by the son of leading Philippine tycoon Henry Sy and will see its holdings in the power distributor increase to about 19.7% as a result of the deal.

The acquisition cost translates into Ps300 per share, which equals a 36% premium to Meralco's close at Ps217 yesterday. The share price has...

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