FPH sells part of Manila Electric stake to Metropac

MANILA, Nov 5 (Reuters) - First Philippine Holdings (FPH.PS) said on Thursday it will sell a 6.7 percent stake in Manila Electric Co (MER.PS) to Metro Pacific (MPI.PS), boosting the control of the PLDT group (TEL.PS) on the utility.

"Metro Pacific Investments Corp exercised its right of first refusal and matched the Triratna offer of the Meralco valuation of 300 pesos per share," a statement from First Holdings said.

Triratna is a company majority owned by the son of the country's leading tycoon Henry Sy, who offered to purchase First Holdings' entire 13.4 percent stake in Manila Electric for $940 million. [ID:nMAN347240]

Sy is a business ally of the San Miguel Corp (SMC.PS) president and had offered 300 pesos per Meralco share.

The First Philippines stake in Manila Electric is key to resolving a long tussle for control of the utility between Philippine Long Distance Telephone (PLDT), Manila's most valuable company, and food-to-power group San Miguel.

PLDT, owned by Hong Kong's First Pacific Holdings (0142.HK), Japan's NTT Communications and NTT DoCoMo (9437.T), and its allied companies including Metro Pacific have right of first refusal on the stake owned by First Philippines, the holding company of the Lopez family.

PLDT and Metro Pacific Chairman Manuel Pangilinan had said early last week he was in talks on a deal with Oscar Lopez, chairman of First Philippines, and that discussions should be concluded soon.

The Lopez group sold a 20 percent stake in Manila Electric to PLDT in March for $414 million and votes its remaining holdings with the telephone firm. Together they control 48 percent of the utility while about 9 percent is held by the public.

San Miguel has said it and its allies own about 43 percent of the utility.