MANILA, Philippines – The group of Manuel V. Pangilinan is comfortable with its shareholding in the country’s largest power distributor Manila Electric Co. (Meralco) and is not likely to buy out San Miguel Corp.’s (SMC) assets in the firm.
“We are comfortable with our current shareholding in Meralco and we would be prepared to assist should San Miguel decide to dispose assets in Meralco,” Pangilinan told reporters following the stockholders meeting of Philippine Long Distance Telephone Co. (PLDT) yesterday.
“There has been no final decision to what extent we may or may not participate, but if we do, we may consider participating in a modest way,” he said further.
He said that should the group decide to acquire more Meralco shares, it would not be to the point where their total stake would go over 51 percent.
“(We will participate but) not to the point it will trigger tender offer obligation,” he said.
A mandatory tender offer is triggered when an investor accumulates more than 51 percent stake in a public company.
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The acquiring company should then offer to buy all shares held by minority shareholders.
SMC president and chief operating officer Ramon S. Ang said earlier that the diversifying conglomerate is willing to sell its stake in Meralco.
SMC owns around 36 percent of Meralco, making it one of the top shareholders in the company.
Beacon Electric Asset Holdings, Inc., a subsidiary of Pangilinan-led Metro Pacific Investments Corp., controls nearly 50 percent of Meralco.
In the same event, Pangilinan said PLDT is on track to meet its P38.3 billion net profit target this year.