Listed firm San Miguel Corp. (SMC) said on Monday that it has arrived at an agreement to sell its remaining shares in the Manila Electric Co. (Meralco) to the Gokongwei-led JG Summit Holdings Inc., which will end up owning a 27.1-percent stake in the utility.
In a statement issued through the Philippine Stock Exchange, the SMC said that its Meralco shares along with those of SMC Global Power Holdings Inc. and San Miguel Pure Foods Co. will be sold to JG Summit.
“We advise that San Miguel Corp. and SMC Global Power Holdings agreed to sell to JG Summit Holdings the shareholdings of SMC Group in Manila Electric Co. [Meralco],” SMC said.
“[The sell off is] subject to the satisfaction of closing conditions mutually agreed upon by the parties,” the company added, saying that they would release details upon the finalization and satisfaction of conditions made in the transaction.
The statement also disclosed that Credit Suisse is the sole financial adviser of SMC for the shares trade.
SMC President Ramon Ang said in a Bloomberg article that the transaction will generate about $2 billion or approximately P87 billion, that will be used for the conglomerate’s investments.
He added that SMC acquired the Meralco shares five years ago, at about P90 a share. The price of Meralco’s shares closed at P286 on Monday. SMC and its allied units previously had a 32.8-percent stake in Meralco.
Earlier, SMC said that it was finding ways to dispose of its 32.9-percent stake in Meralco within the year to help generate $35 billion or approximately P1.5 trillion for an investment plan to enter or beef up its presence in industries such as airlines, roads and railways, mining and energy.