Local units of First Pacific Co. on Thursday bolstered their control of Philippines power retailer Meralco by buying out an ally for about 44.6 billion pesos (937.37 million dollars), the seller said.
One of the units, Metro Pacific Investments Inc., exercised its right of first refusal and matched a rival bid for First Philippine Holdings Corp.'s 13.4 percent stake in Manila Electric Co. (Meralco), First Holdings said in a statement.
The transaction, announced after the close of trading, values Meralco at 300 pesos a share, a hefty premium over its Thursday closing price of 221 pesos.
A bid earlier this week for Meralco by TriRatna Holdings Corp., which is majority owned by a son of shopping mall magnate Henry Sy, triggered a renewed takeover battle for one of the country's largest firms.
There was a tussle earlier this year for control of Meralco between Hong Kong-listed First Pacific's local affiliates and diversifying brewer San Miguel Corp.
A First Pacific affiliate, dominant local carrier Philippine Long Distance Telephone Co. (PLDT) acquired a 20 percent stake in Meralco in March from the family of local industrialist Oscar Lopez, which also controls First Holdings.
Metro Pacific separately holds a 14.7 percent stake in Meralco.
San Miguel holds a 27 percent stake in listed Meralco, and together with its allies control about 43 percent of the power retailer.
First Holdings chief executive Oscar Lopez said in the statement: "We are very happy with the agreement reached with (the Metro Pacific) group. It reflects a valuation that shows the strong growth prospects of Meralco."
"The proceeds, no doubt, will allow First Holdings to pursue its new directions and further establish itself in the country as the premier renewable energy provider," Lopez added.
