PLDT keen to buy more Meralco shares, but is ‘not in a hurry’–MVP

BusinessMirror
Written by VG Cabuag

THE Philippine Long Distance Telephone Co. (PLDT) may buy more shares of Manila Electric Co. while it’s “not in a hurry” to boost its stake in the utility, chairman Manuel V. Pangilinan said.

Pangilinan’s group already controls 34.7 percent of Meralco through Metro Pacific Investment Corp. which holds 14.7 percent in the power retailer and PLDT unit Pilipino Telephone Corp. has 20 percent. The addition of the 6.7-percent Lopez stake from First Philippine Holdings Corp. will increase the group’s holdings in Meralco to 41.4 percent.

Fourth-quarter profit is projected to be strong, Pangilinan said. PLDT’s November earnings and new cellphone subscribers are “quite good,” he said.

Pangilinan also said a slightly higher capital expenditures (capex) budget will be allotted in 2010 compared with this year. “We’re still in the budgeting process…but [capex] will probably be up slightly,” he said at the sidelines of second Public-Private Sector Dialogue for Post-Disaster Assistance. The PLDT chief declined to provide further details.

PLDT has allotted some P27 billion for capex this year.

As of the third quarter, PLDT has already spent some P18.06 billion of its budget, of which P5.1 billion was allotted for the fixed-line business, largely composed of investments in new-generation network and outside plant rehabilitation.

On the other hand, Pangilinan said they are on track in reaching the core net income target of P41 billion for this year. “There’s no problem on that aspect,” he stressed.

For the nine-month period, PLDT posted a net income of P30.01 billion, from P26.17 billion last year, despite the slowing economy. Read more...