Publicly listed Metro Pacific Investments Corp. (MPIC) is in talks with Philippine Long Distance Telephone Co.'s (PLDT) retirement fund to buy the latter's recently acquired stake in power distributor Manila Electric Co. (Meralco).

In a statement released Friday, MPIC said it is planning to purchase all shares owned by affiliate PLDT Beneficial Trust Fund (BTF) in Meralco, or 10.17 percent of the power company's issued share capital, in cash. It added BTF will also be allowed to subscribe to new shares of MPIC to become a significant shareholder in the company. This, MPIC noted, will strengthen MPIC's capital base.

"Consistent with our efforts to grow our business in infrastructure, we view the proposed Meralco transaction is in alignment with our present investment portfolio and will further strengthen our position as a significant player in the various areas of the infrastructure industry," MPIC president and chief executive Jose Ma. Lim said.

MPIC said the final terms and conditions of the transaction, including the acquisition cost of the Meralco stake and valuation of MPIC shares, have yet to be approved by its board of directors. BTF was said to have invested an estimated P10.3 billion ($213.5 million) in Meralco.

According to MPIC, its planned acquisition of Meralco shares shall complement its existing investments in the road, water, and hospital sectors represented by controlling interests in the North Luzon Expressway, Maynilad, Makati Medical Hospital, and Davao Doctors Hospital. Should opportunities arise, it said it may purchase additional stakes in Meralco.

"The possible operational synergies in terms of Meralco's subscriber base, accessible data centers, wireless bill payments and other economies of scale will enhance customer service response and speed up the coordination systems within the group," Lim explained.