MANILA, Feb 8 (Reuters) - Metro Pacific Investments Corp and its sister firm will merge their stakes in Manila Electric Co as it reiterated on Monday its pledge to buy more shares in the Philippines' biggest power retailer.
Metro Pacific, a unit of Hong Kong's First Pacific Co Ltd , said in a statement it was in discussion with Pilipino Telephone Corp (Piltel) to consolidate their shares in Manila Electric or Meralco.
Metro Pacific and Piltel, a unit of Philippine Long Distance Telephone Co also partly owned by First Pacific, together own 34.7 percent of Meralco.
Metro Pacific has agreed to buy a further 6.6 percent stake in Meralco held by First Philippine Holdings Corp via a call option that expires on Feb. 28.
Shares of Metro Pacific rebounded as much as 4.5 percent at mid-session from 13-month lows hit on Friday before erasing gains to close unchanged at 2.22 pesos. The stock outperformed the main index which lost 0.3 percent.
Traders said the stock's fall on Friday was partly due to worries Metro Pacific was encountering cash problems, after it twice extended the signing of a call option deal on its purchase of more Meralco shares.
Metro Pacific said on Monday funding for the additional 6.6 percent stake has been agreed with a syndicate of banks and with parent First Pacific. It did not give further details.
Acquiring the additional shares would raise Metro Pacific-Piltel's interest in Meralco to 41.3 percent, the second biggest shareholder after San Miguel Corp and its allies which jointly own about 43 percent.
(Reporting by Manolo Serapio Jr.; Editing by Rosemarie Francisco)
((manolo.serapio@thomsonreuters.com; +632 841 8936; Reuters Messaging: manolo.serapio.reuters.com@reuters.net)) Keywords: METROPACIFIC/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Metro Pacific, a unit of Hong Kong's First Pacific Co Ltd , said in a statement it was in discussion with Pilipino Telephone Corp (Piltel) to consolidate their shares in Manila Electric or Meralco.
Metro Pacific and Piltel, a unit of Philippine Long Distance Telephone Co also partly owned by First Pacific, together own 34.7 percent of Meralco.
Metro Pacific has agreed to buy a further 6.6 percent stake in Meralco held by First Philippine Holdings Corp via a call option that expires on Feb. 28.
Shares of Metro Pacific rebounded as much as 4.5 percent at mid-session from 13-month lows hit on Friday before erasing gains to close unchanged at 2.22 pesos. The stock outperformed the main index which lost 0.3 percent.
Traders said the stock's fall on Friday was partly due to worries Metro Pacific was encountering cash problems, after it twice extended the signing of a call option deal on its purchase of more Meralco shares.
Metro Pacific said on Monday funding for the additional 6.6 percent stake has been agreed with a syndicate of banks and with parent First Pacific. It did not give further details.
Acquiring the additional shares would raise Metro Pacific-Piltel's interest in Meralco to 41.3 percent, the second biggest shareholder after San Miguel Corp and its allies which jointly own about 43 percent.
(Reporting by Manolo Serapio Jr.; Editing by Rosemarie Francisco)
((manolo.serapio@thomsonreuters.com; +632 841 8936; Reuters Messaging: manolo.serapio.reuters.com@reuters.net)) Keywords: METROPACIFIC/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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