San Miguel Corporation announced that they were able to raise US$400 million from selling portion of its stake in Manila Electric Co. San Miguel sold 5.7% stake or 64.3 million shares priced at PHP270 per share. The stake sale exceeded San Miguel's planned offering of as much as 48 million shares. Shares were priced at the below the initial set pricing of PHP280. The company announced that they will use the proceeds to fund San Miguel's venture in energy, airlines and infrastructure.
"It's simply reflecting the discounted price," Alex Pomento, a Manila-based strategist at Macquarie Group Ltd., said of Manila Electric's price drop. "There's nothing wrong with the fundamentals of the company."
Manila Electric Co or commonly known as Meralco, is the country's premier electric provider which serves a quarter of the Philippines' population.
San Miguel Corp announced of plans to sell their Meralco shares in segments along with 49% of SMC Global Power Holdings Corp. SMC Global Power is the country's largest power generator with assets that account for a fifth of the country's capacity. The SMC Global Power equity is valued at US$1.6 billion.
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