BIZ BUZZ: MVP awaits RSA move
Billionaire Manuel V. Pangilinan is weighing his next move as tycoon Ramon S. Ang gets a small slice of his power arena.
Pangilinan, who chairs Manila Electric Co. (Meralco), said the board had already touched base about the recent discounted entry of Ang-led San Miguel Corp. (SMC) to the power giant.
After a 17-year wait, SMC completed the buyout of Meralco shares from state-run Land Bank of the Philippines for P3.9 billion—a sharp discount from the current market value of P23 billion for about a 3.8-percent stake.
This is not enough for Ang to secure a board seat, however. So unless he buys more shares, he will remain a passive investor while waiting for the right time to monetize.
The question thus was raised on whether Meralco will be open to acquiring those shares at current market prices. The executive, however, said: “No decision.”
“We just look at the options,” he told reporters.
But Pangilinan also said that they would “welcome” SMC as a shareholder.
Peter Garnace, equity research analyst at Unicapital Securities Inc., told Inquirer that this development was a “major win” for SMC, with two advantageous routes: exit for immediate gains or wait it out for Meralco’s stable dividends.
“If San Miguel cashes out, it can raise a significant amount of cash to finance debt obligations and expansion plans of its power arm,” Garnace said.
“While the transaction does not include a board seat, retaining ownership could also lay the groundwork for greater influence in the strategic direction of Meralco,” he added.
Two titans, one question: What’s the next power play?
