FIRST PHILIPPINE HOLDINGS IS A CORPORATION THAT IS CONSTANTLY IN ACTION. WE’RE ALWAYS TRYING TO FIND WAYS TO DELIVER FOR OUR STAKEHOLDERS AND THE FILIPINO PEOPLE.
First Philippine Holdings Corporation (First Holdings) announced that it has completed transactions of its 6.6 percent stake in the Manila Electric Company (Meralco) to Beacon Electric Asset Holdings, Inc. (Beacon Electric).
The transaction was effected by means of a block sale coursed through the Philippine Stock Exchange (PSE). First Holdings received a payment of PhP300 per share or a total purchase price of Php22.41 billion.
The deal was made pursuant to an Option Agreement with Rightlight Holdings Inc. (which was renamed as Beacon Electric) in March 1, 2010. In this agreement, First Holdings has consented to the rights assignment by MPIC and Piltel to RHI over their rights in their respective Meralco common shares.
The parties have also entered into a voting arrangement that their directors in Meralco will vote as one block, in matters that may be brought for approval by its board. Similarly, the Lopez Group also executed a pooling of votes agreement in matters that may be brought for approval by Meralco shareholders. Both of these agreements may be terminated upon written notice by Beacon Electric and Piltel respectively.
First Holdings Chairman and CEO Oscar M. Lopez remarked, “With the additional resources we can continue to take advantage of other opportunities in the power and energy sector, with the end in view of maximizing value for all our stakeholders.”
First Holdings still retains 74, 475, 706 shares or a 6.6 percent stake in Meralco and is entitled to nominate one director among other rights.