Philippine conglomerate San Miguel Corp. eyes higher stake in power business

Philippine conglomerate San Miguel Corp. (SMC) will bring in a Japanese investor to expand its stake in Manila Electric Co. (Meralco), the country's biggest power distribution firm, SMC officials disclosed Monday.

"The company is interested in acquiring an additional equity stake in Manila Electric Company, and is in discussions with a Japanese investor for such equity stake in the event the Company is invited to participate in the sale of the same," SMC Corporate Information Officer Ferdinand K. Constantino said in a disclosure issued to the Philippine Stock Exchange.

SMC declined to name the Japanese investor and Meralco declined to issue a statement.

SMC, Southeast Asia's biggest food and beverage conglomerate, bought 43 percent stake in Meralco as part of its diversification plan. The decision to bring in a still unnamed Japanese investor will not only help SMC realize its ambition to diversify from its core businesses.

It also intensifies the rivalry between the country's two biggest companies SMC and telecommunications giant Philippine Long Distance Co. (PLDT ) - as each party seeks to control Meralco.

PLDT holds 48 percent of Meralco's shares. Meralco chairman Manuel Lopez has earlier said his family's First Philippine Holdings Corp. (FPHC) gave PLDT the right to be offered first its remaining 13.4 percent stake in Meralco in case of a divestment.

The Lopez family - the clan that once controlled Meralco and one of the most powerful dynasties in the Philippines is an ally of PLDT Chairman Manuel V. Pangilinan.

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