Metro Pacific Investments Corporation (MPIC) has agreed to acquire an additional 25% interest in Beacon Electric Asset Holdings, Inc. for PHP26.2 billion (US$567.3 million) from PLDT Communications and Energy Ventures (PCEV), a subsidiary of Philippine Long Distance Telephone Company (PLDT), the Philippine’s premier telecommunications provider.
MPIC, one of the biggest infrastructure company in the Philippines, will pay PHP17.0 billion (US$368.1 million) in cash immediately on completion of the transaction and the balance of PHP9.2 billion (US$199 million) will be paid in installments over the following four years.
This transaction follows Beacon Electric’s recent acquisition of a 56% stake in Global Business Power Corporation and increases MPIC’s economic interest in Global Power to 42% from 28%. Beacon Electric also owns a 35% stake in Manila Electric Company (Meralco), the biggest electricity distributor in the Philippines, whose service area accounts for more than half of the Philippines’ economic output. MPIC already owns a 15% direct stake in Meralco; this transaction lifts its direct and indirect economic interest in Meralco to 41%.
First Pacific Managing Director and Chief Executive Officer Manuel V. Pangilinan, stated:
"The purchase of additional shares in Beacon Electric by MPIC is a logical step to consolidate First Pacific Group’s infrastructure and energy interests under MPIC. We expect an immediate increase in MPIC’s earnings from this transaction, while the proceeds received by PLDT will strengthen its financial position and help it enhance the quality and coverage of its data and internet infrastructure.”