The MVP Group, led by businessman Manuel V. Pangilinan, is considering the potential acquisition of San Miguel Corporation’s (SMC) recently acquired 3.8% stake in power distributor Manila Electric Co. (Meralco).

SMC, through its power unit San Miguel Global Power Holdings Corp., finalized the acquisition of 43.23 million Meralco shares from the Land Bank of the Philippines on July 23 for approximately PHP3.9 billion, or PHP90 per share. The transaction marked the resolution of a legal dispute that had delayed the sale for 17 years.

Pangilinan, chairman and CEO of Meralco, confirmed to reporters that the board has discussed the possible acquisition but emphasized that no final decision has been made. “As to what he intends to do with his acquisition, we have not spoken to him about it. A bit too early to do that,” Pangilinan said. “We just look at the options. It really depends on what San Miguel’s plans are… Of course, they’re welcome to become shareholder.”

According to the disclosure by San Miguel, the transaction was carried out “through the deeds of absolute sale which contained the terms and conditions mutually determined by and acceptable to both parties and conformably with the decision of the Court of Appeals.” The shares were sold at a steep discount to Meralco’s closing price of PHP540 per share, valuing them at PHP23.4 billion at current market rates.

The shares relate to a 2008 deal in which Land Bank agreed to sell 46.6 million Meralco shares to San Miguel. The sale had been on hold due to graft charges against former Land Bank officials, which were cleared by the Sandiganbayan in June 2024, paving the way for the transaction’s completion.

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.