Pangilinan, Gokongwei join forces again for full control of Meralco
MANILA (UPDATE) - It's a deal.
Less than a week after confirming talks, JG Summit has agreed to buy San Miguel's stake in Meralco, making them allies yet again with Manuel Pangilinan's PLDT-Metro Pacific group and ending Pangilinan's unintended partnership with San Miguel's Ramon Ang.
The Gokongwei-led JG Summit is buying out the San Miguel group from Meralco, the same San Miguel group that fought Pangilinan for control of the country's largest power retailer in 2008 and 2009.
Once the deal pushes through, it will mark the third tie-up of the Gokongweis with Pangilinan.
JG Summit acquired a 12.9 percent stake in Pangilinan's PLDT in 2011 after selling Sun Cellular to the larger telecom.
Then there is the joint venture with Metro Pacific investments to bid for the Cebu-Mactan International airport formed earlier this year.
That is the Gokongweis' first foray into infrastructure, and this purchase of Meralco shares is the Gokongweis' first foray into power.
Not bad for two parties that fought for control of PLDT just over a decade ago.
The Gokongweis' bid to take over PLDT in 2002 was valued at US$1 billion dollars.
Their purchase of a minority stake in Meralco will cost double.
San Miguel President Ramon Ang said he expects to raise $2 billion from the sale of Meralco shares held by San Miguel Corporation, San Miguel Purefoods, and SMC Global Power.
CO Financial said if the shares were priced at P270, the same price San Miguel sold a 5.7 percent Meralco stake in July, San Miguel's 27.1 percent stake would fetch a total of P82.2 billion, roughly $1.9 billion.
Ang plans to use the proceeds for his company's expansion into airlines, energy, and infrastructure -- sectors where he will see the Gokongweis again, as competitors.
After the news, shares in Meralco and seller San Miguel Purefoods soared by over 4 percent.
San Miguel Corporation rose 4/10th of 1 percent, while JG Summit fell nearly 2 percent.