MANILA — Manila Electric Company (Meralco) is currently assessing its next steps after San Miguel Global Power Holdings Corp. (SMGP) purchased a 3.9% stake in the utility firm, stemming from a long-pending transaction.

Meralco Chairman and CEO Manuel V. Pangilinan said on Monday, "This was discussed earlier at the board, but no decision has been made yet. We are exploring various options, which will depend on San Miguel's responses."

The shares, totaling 43.23 million and acquired at PHP 90 each, were bought by SMGP from the state-owned Land Bank of the Philippines (LANDBANK). The initial agreement, dating back to 2008 when SMGP was known as Global 500 Investment, was rescinded by LANDBANK, prompting SMGP to file a lawsuit claiming unjust cancellation. In November 2022, the Court of Appeals ruled in favor of SMGP, finding no valid grounds for the bank’s withdrawal.

Despite the ongoing deliberations, Mr. Pangilinan affirmed that SMGP remains "welcome to become a shareholder."

As the country’s largest private power distributor, Meralco serves over eight million customers in Metro Manila and adjacent areas. To expand reliable electricity access, the company submitted an unsolicited joint venture proposal last year with Batangas Electric Cooperative II (Batelec II) following appeals for improved power stability in the Batangas province.

Senior Vice President for External and Government Affairs Ariel Paciano D. Casanova stated Meralco is currently seeking clarity from Batelec II regarding the competitive selection process for the partnership. "We are inquiring how our unsolicited proposal will be handled — whether it will be honored or subjected to an open bidding process. Those are the questions we have," he explained.

The proposal involves converting Batelec II, an electric cooperative, into a stock corporation supported by capital investments and share acquisitions by Meralco. Under the Electric Power Industry Reform Act, electric cooperatives may convert into stock cooperatives or corporations.

"Our goal is to boost participation in the cooperative and strengthen its capabilities by infusing capital and advanced technology," Mr. Casanova added.

Meralco’s majority shareholder, Beacon Electric Asset Holdings, Inc., includes significant interests from PLDT Inc. and its related entities, highlighting the intertwined nature of major Philippine corporate groups in energy and telecommunications.