By Roderick T. dela Cruz

PHILIPPINE Long Distance Telephone Co. will acquire from the Lopez family a 20-percent stake in power distributor Manila Electric Co. to help fend off a supposed hostile takeover by food and beverage giant San Miguel Corp.

PLDT told the Stock Exchange that its board had approved the acquisition of 223 million Meralco shares for P20 billion through its subsidiary, Pilipino Telephone Corp.

It said Piltel would pay P90 for each share in the power firm, which supplies electricity to 4.5 million households and establishments in Metro Manila and nearby provinces. The deal is subject to the approval of Piltel shareholders in their meeting on June 30.

Piltel is a 92.81 percent-owned subsidiary of Smart Communications, which is wholly owned by PLDT.

The acquisition will raise PLDT’s stake in Meralco to 30.17 percent following the telecommunication firm’s purchase last month of a 10.17-percent stake in the country’s largest power retailer.

The Lopez group’s stake will decrease to about 14 percent, while San Miguel’s would remain at 34 percent.

“These arrangements, once completed and implemented, will serve to consolidate the PLDT group’s cellular business under Smart, thereby maximizing revenues streams and eliminating any lingering regulatory issues relating to the traffic between the two companies,” PLDT said.

It said it did not expect to invest further in Meralco. Lopez group patriarch Oscar Lopez expressed optimism over Meralco’s partnership with PLDT.

“We believe we can leverage the strengths and synergies inherent among each of the partners and ultimately benefit our customers and the country as a whole,” he said.

“Our family feels very proud of Meralco’s long history. This partnership, we believe, will usher in a new and even more dynamic era in its corporate life.”

Meralco president Jose de Jesus welcomed PLDT, saying its entry would create a positive impact on the company’s efforts to achieve efficiencies and generate cost savings.

In a separate disclosure, Lopez holding firm First Philippine Holdings Corp. said it entered into an investment and cooperation agreement with PLDT “to allow both companies, directly or indirectly, to vote their shares in Meralco based on mutuality of interest and proportionate allocation of voting rights.”

“First Holdings and PLDT agreed on certain corporate governance principles such as nomination of directors to the Meralco board. The governance principles agreed upon will enable PLDT to actively support in the management of Meralco. With the partnership, the parties plan to maximize business synergies.”

Talk about PLDT and the Lopez group teaming up for a controlling stake in Meralco surfaced early this week after PLDT was reported as planning to expand its one board seat in the power distributor.

Meanwhile, PLDT’s sister company, Metro Pacific Investments Corp., said it was acquiring the entire 10.17-percent stake owned by Beneficial Trust Fund, PLDT’s the retirement fund, in Meralco.

Metro Pacific said the company was in talks with PLDT’s retirement fund to acquire its shares in Meralco for cash. At the same time, the trust fund has been invited to become a significant shareholder of Metro Pacific by subscribing to new shares.

“It is further intended that, should suitable opportunities arise, Metro Pacific is open to acquiring further shares in Meralco so as to develop its position as a strategic shareholder of Meralco with appropriate board and management participation and to enable Metro Pacific to equity account for the results of Meralco,” the company said.

Metro Pacific has controlling interests in North Luzon Expressway, Maynilad Water Services Inc., Makati Medical Center and Davao Doctors. With Alena Mae S. Flores, Jennifer Austria and AFP