Oscar Lopez, chairman of the Lopez Group of Companies, yesterday described the divestment of the group from the country’s largest power distributor Manila Electric Co. as painful but necessary.

“It is important to point out that given the magnitude of this decision, senior family members and some key advisors had discussions over the last few months of the future of Meralco and the group. Eventually, we realized that it was a necessary business decision, no matter how painful and difficult it was,” Lopez said.

The Lopez group last week agreed to sell P20 billion worth of shares to Pilipino Telephone Corp., a subsidiary of Philippine Long Distance Telephone Co.

Reports speculated that Oscar and his brother Manolo had a disagreement over the transaction.

“Given how Meralco’s history has long been intertwined with our family, acceptance of this sale was not easy, most especially by my brother Manolo, who has invested more than 30 years of his life with the company,” he said.

Lopez said the final decision to sell the group’s stake went beyond the family matter, as the board of the First Philippine Holdings approved the transaction, during a special board meeting on March 13. Roderick T. dela Cruz