THE GOVERNMENT Service Insurance System (GSIS) has sold its 4% stake in Manila Electric Co. (Meralco), abandoning a demand that it be given the same premium paid by the Pangilinan group when the latter tightened its hold on the country’s largest power utility. GSIS President Winston F. Garcia told BusinessWorld the state pension fund had dropped its bid to have the tender offer rule imposed on businessman Manuel V. Pangilinan, whose firms last year effectively raised their stake in Meralco to 41.4%.
"We already withdrew our complaints because we have no [further] interest in the matter, Mr. Garcia claimed.
"[A former unit of] Philippine American Life and General Insurance Co. (Philamlife) bought our Meralco stake last month."
Monico V. Jacob, president of pre-need firm PhilPlans, Inc., confirmed that his company was the one which bought the GSIS’s Meralco stake, describing the acquisition as a good investment.
"It is part of the investment program of the [pre-need firm]. We got a good deal," he said.
Messrs. Garcia and Jacob did not disclose how much was involved in the sale, describing the agreement as confidential but hinting the price was "well above market..."
Meralco shares closed at P197 on Friday. This compares to the price of P300 per share Mr. Pangilinan gave to the Lopez family in November for half of their remaining stake in the utility. At that time Meralco was trading at P221 apiece. Read more...
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