Philippine Long Distance Telephone Company PLDT has bought 20% in Manila Electric Company Meralco from the Lopez group, which increases its stake to 30% and effectively prevents San Miguel from taking control of the power distributor.
According to an announcement, PLDT will pay 90 pesos per share for 223 million existing shares, resulting in a total consideration of Ps20.07 billion $416 million. The Ps90 price represents a 2.2% discount to Friday's close of Ps92. Part of the deal will be settled through exchangeable notes with a face value of Ps2 billion, which gives PLDT the right to acquire 22.22 million Meralco shares.
The Lopez family has been searching for a white knight that could...
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