pldt-buys-20-of-meralco-from-lopez-group

PLDT buys 20% of Meralco from Lopez group

The telecom operator appears as a white knight to prevent the San Miguel group from gaining control of one of the Lopez family's long-term assets.

Philippine Long Distance Telephone Company PLDT has bought 20% in Manila Electric Company Meralco from the Lopez group, which increases its stake to 30% and effectively prevents San Miguel from taking control of the power distributor.

According to an announcement, PLDT will pay 90 pesos per share for 223 million existing shares, resulting in a total consideration of Ps20.07 billion $416 million. The Ps90 price represents a 2.2% discount to Friday's close of Ps92. Part of the deal will be settled through exchangeable notes with a face value of Ps2 billion, which gives PLDT the right to acquire 22.22 million Meralco shares.

The Lopez family has been searching for a white knight that could...

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