SMC increases Meralco stake through P93M share purchase

San Miguel Corp., led by billionaire Ramon Ang, has increased its stake in Manila Electric Co. (Meralco) through the acquisition of additional shares worth P93 million.

SMC's unit, San Miguel Global Power Holdings Corp., bought about 1.03 million common shares from Land Bank of the Philippines at P90 each on the Philippine Stock Exchange last Friday.

This purchase follows SMGP’s earlier buyout of Landbank's 3.8 percent stake in Meralco for P3.9 billion, which was stalled for nearly 17 years due to legal issues.

The Court of Appeals ruled that Landbank must complete the sale of its shares to SMGP according to a December 2008 agreement.

Market analysts speculate that SMC might consider selling its Meralco stake, potentially earning around P20 billion from the exit.

SMC has not disclosed its plans for the Meralco investment but observers suggest this could be used for strategic future investments.