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January 24, 2008 |
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MANILA ELECTRIC: About 8% of MERALCO Sold for PHP6.84 Billion A block of shares representing about 8% of the Manila Electric Co. was sold for PHP6.84 billion on Monday, the Philippine Daily Inquirer reports. Stock analysts allege that government entities were involved, the Inquirer adds. According to data from the Philippine Stock Exchange, two transactions took place involving the shares. Each transaction sold 42.297 million shares sold at PHP80.91 each, the PSE revealed. However, the report adds, sources within the Lopez family said that they were not part of the transactions. These sources further said that the government was mostly likely the seller and buyer of the shares. The Inquirer reveals that rumors abound linking the Government Service Insurance System and the Social Security System, both of which are government-run pension funds, to the sale but GSIS general manager Winston Garcia said the pension fund did not put up any MERALCO share that it owns for sale. THe SSS likewise denied the allegation, with president Corazon dela Paz saying SSS-owned shares were not involved in the sale. "Whoever the buyer is will soon disclose [the deal] to the Securities and Exchange Commission," Mr. Garcia instead said. However, the Inquirer relates, stockbrokers have speculated that the government wanted to consolidated its ownership in MERALCO in order to attain a favorable price. The government had announced its intent to sell its shareholdings in MERALCO this year, the Inquirer recalls. Headquartered in Ortigas, Pasig City, the Manila Electric Company -- http://www.meralco.com.ph/ -- is the largest utility in the Philippines, providing power to 4.1 million customers in Metropolitan Manila and more than 100 surrounding communities. As deregulation takes effect, Meralco is reducing its dependence on state-owned National Power Corp. by increasing the amount of power it purchases from independent power producers. Meralco is also preparing for competition by moving into non-regulated activities, including energy consulting, independent power production, engineering, fiber optics, e-commerce, and real estate. The Troubled Company Reporter-Asia Pacific reported on Dec. 14, 2007, that Standard & Poor's Ratings Services revised the outlook on its ratings on Manila Electric Co. (Meralco) to stable from negative. The 'B-' long-term issuer credit rating on Meralco was affirmed. |
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