MPIC, whose assets span power, water services, tollroads and hospitals, will pay P580.99 each for 21.4 million shares—more than six times the P90 price San Miguel Global Power Holdings Corp. paid under its long-delayed Landbank deal.
The transaction was priced at a 39.3-percent premium to Meralco’s last closing price of P417.20 and will lift MPIC’s direct and indirect interest in Meralco to about 49.4 percent from 47.5 percent.
San Miguel, a diversified food, drinks, power and infrastructure conglomerate, will retain 25.2 million shares, or roughly 2.23 percent, while making about P10.5 billion before costs on the shares being sold.
Why stop at 49.4 percent?
Buying San Miguel’s entire 4.13-percent holding would have pushed MPIC’s direct and indirect Meralco interest above 51 percent.
Stopping at 49.4 percent keeps MPIC below the level where an acquisition resulting in ownership of more than 50 percent would generally trigger a mandatory offer for all remaining shares.
Neither company said whether that threshold influenced the size of the transaction.
Sale still needs to close
The shares represent about 1.9 percent of Meralco and will be transferred through a special block sale on the Philippine Stock Exchange.
The transaction remains subject to conditions under the contract, with the companies expected to disclose its completion separately.
San Miguel has not said whether it plans to keep or sell its remaining Meralco shares.
How SMC got the stake
San Miguel acquired 46.6 million Meralco shares from Landbank in 2025, completing a P90-per-share deal signed 17 years earlier during its battle with Pangilinan for control of the utility.
A legal dispute prevented Landbank from delivering the shares until SMC won a court case enforcing the agreement.
Meralco was trading at about P544 when the transfer was completed, giving SMC an immediate paper gain.
Ownership reshaped
Once the sale closes, MPIC’s direct and indirect stake will rise to about 49.4 percent, followed by JG Summit Holdings with 26.37 percent.
First Philippine Holdings will retain 3.94 percent, while San Miguel’s interest will fall to roughly 2.23 percent.
The Lopez family also holds about 0.22 percent through Mantes Corp.
P179 billion selldown
Meralco’s rally broke after President Ferdinand Marcos Jr. called for the removal of system-loss charges during his July State of the Nation Address.
The shares are down 27.57 percent this year at P417.20, erasing roughly P179 billion in market value.
—Edited by Miguel R. Camus
