MANILA, Philippines - San Miguel Corp. said Friday it is selling part of its stake in Manila Electric Co. (Meralco) to its San Miguel Pure Foods subsidiary and it is taking its power business public within the year.
San Miguel said it is selling 59 million Meralco shares to Pure Foods, about 5% of the utility.
It had acquired 27% of Meralco from the state pension fund Government Service Insurance System in 2008.
That helped set the stage for a battle for control of the utility. While it said it eventually raised its stake to 33 percent, the battle was won by Manuel Pangilinan's Philippine Long Distance Telephone Co. and Metro Pacific group.
On the initial public offering of its power business, San Miguel said its board has approved a reorganization and an increase in the authorized capital of SMC Global Power.
San Miguel has acquired four power assets from the government, making it one of the country's top three power producers alongside Aboitiz Power and First Gen Corp., a sister company of ABS-CBN Corp.
|San Miguel power assets
|San Roque contract
(Corrects earlier version which said San Miguel bought 3 state power assets.)