JG Summit Holdings Inc has completed the purchase of San Miguel Corp's 27% stake in the Philippines' biggest power distribution firm, Manila Electric Co (Meralco). The said transaction is valued at PHP72 billion, according to Inquirer.
The deal allowed JG Summit to acquire 305.69 million Meralco shares at PHP235 apiece. The said shares were traded through the Philippine Stock Exchange on Wednesday, the report stated.
In October, JG Summit agreed to buy the Meralco block for PHP72 billion. The company owned by John Gokongwei, Jr has since processed equity and debt funding transactions to fund the acquisition, the report detailed.
The deal solidifies the partnership between the Gokongwei group and Manuel V. Pangilinan's firm, First Pacific, which holds controlling shares in Meralco. The Pangilinan and Gokongwei groups are also partners in the telecommunications business, the report added.
San Miguel unloaded its 27% Meralco stake to focus on other business. The conglomerate has diversified from the food and beverage industry to power, telecommunications, banking, airline, mining, and other infrastructure investments, national newspaper Philippine Daily Inquirer reported.
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