On Tuesday, San Miguel Corp said that it has been talking with a potential firm to sell its stake in power firm Manila Electric Co or Meralco. The move, as reported by Reuters, was seen as a cash-generating strategy for San Miguel to have funds available for infrastructure ventures.
Back in July, San Miguel was able to raise USD400 million by selling a 5.7% stake in Meralco. It had used the funds to beef up its other power assets.
San Miguel President Ramon Ang had confirmed to news agency Reuters that JG Summit Holdings Inc had been engaged in talks with the Philippine conglomerate to purchase its stake in Meralco worth USD7.2 billion. Although Ang did not disclose the size of the stake San Miguel would be selling, Reuters said that San Miguel holds a 27.1 stake in the Manila-listed Meralco.
Beacon Electric Asset Holdings Inc, who is Meralco's biggest shareholder at nearly 50% ownership, had said that it was not interested in purchasing any more shares because it could lead to a general share offer.
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