July 14, 2009
First Philippine Utilities Corporation (FPUC), a wholly-owned subsidiary of First Philippine Holdings Corporation (First Holdings), today completed the sale of its 223 million common shares in Manila Electric Company (Meralco) to Pilipino Telephone Corporation (Piltel) for P20.07 billion. The sale of the shares which represent around 20 percent of Meralco’s outstanding capital stock was covered by a Share Purchase Agreement between FPUC and Piltel, a subsidiary of the Philippine Long Distance Telephone Company (PLDT).
First Holdings Chairman and CEO Oscar M. Lopez remarked, “We are very pleased that the transaction between First Holdings and the PLDT group led by Mr. Manny Pangilinan was closed smoothly and ahead of schedule. The proceeds from the sale will help to further pare down debt and unlock the value potential of First Holdings moving forward.”
The deal was made pursuant to an Investment and Cooperation Agreement signed between First Holdings and PLDT last March 12, 2009 wherein both parties also agreed on certain corporate governance principles such as the nomination of directors to the Meralco Board.
To view the related SEC 17-C disclosure, please click on the file 17-C (FPUC-Piltel 14July2009).