San Miguel Global Power Holdings Corp. (SMGP) is unlocking value from its long-held Meralco minority stake, selling the shares to Metro Pacific Investments Corp. (MPIC) to free up capital for renewable energy projects and align resources with businesses where it holds direct operating control.
The stake traces back to a December 2008 agreement, when SMGP agreed to buy Meralco shares at P90 each—well above the then-market price of roughly P57—with fixed-term interest adding to total investment cost. Prolonged litigation delayed share transfer until 2025, and SMGP received no dividends during those 17 years. Foregone dividends are estimated at about P13 billion, or roughly P21 billion when factoring in the cost of money over the period. The P90 acquisition price reflects 2008 terms, not 2025 valuations, while the MPIC sale is a separate transaction priced under current market conditions.
This move frees up capital tied up in a non-core, long-delayed investment to fund renewable energy expansion, marking a key strategic shift: SMGP is redirecting funds from legacy minority holdings to priority sectors where it drives operations and growth.
