September 25, 2013

Gokongwei eyes SMC’s Meralco stake

Conglomerate San Miguel Corp. is negotiating to sell its remaining 27.1 % stake in Manila Electric Co. to the group of tycoon John Gokongwei, potentially completing its divestment from the country’s biggest power distributor. SMC is worth P84 billion based on Tuesday morning’s price of P276.40 a share.

SMC earlier said it would pare down its stake in Meralco in phases but stock analysts expect SMC to sell all of its remaining shares as a block this time around.

Other market sources estimated that JG Summit could be willing to buy out SMC at P245 a share for a total block price of about P75 billion. This will be a discount to Tuesday’s closing price of P277 per share, which valued SMC’s stake at around P84.6 billion. - WealthSec