Hong Kong-based First Pacific Co. Ltd. is willing to dilute its equity in subsidiary Metro Pacific Investments Corp. (MPIC) to widen public ownership, its managing director and chief executive said Thursday.

"First Pacific is open so there could be greater public float," First Pacific managing director and chief executive Manuel V. Pangilinan said at the sidelines of the annual stockholders' meeting of MPIC which he also chairs.

MPIC, a Philippine-listed investment company with interests in water concession, tollroads, and hospitals, is 97.9-percent owned by Metro Pacific Holdings Corp., which in turn, is largely owned by First Pacific.

Public ownership in MPIC, meanwhile, is currently a little over 2 percent.

Pangilinan said the goal is to bring up public ownership to at least 25 percent, with First Pacific still retaining the controlling interest. "The greater the public float, the better for MPIC," he said, adding that it would still be favorable for First Pacific if MPIC becomes a "truly public company."

To increase public ownership, Pangilinan said MPIC could either sell primary shares or offer a combination of primary and secondary shares, depending on market conditions. He added that the target timetable for this is the second half of 2009.

Pangilinan said a number of private equity funds have approached MPIC for potential investments. However, he said the company's main concern was that the liquidity of MPIC is very small. "That's why we have to be able to place shares in the market."

MPIC shareholders have approved the increase in the company's authorized capital stock by P10 billion to P31.55 billion.

These are divided into 28.5 billion common shares with a par value of P1 per share, 5 billion class A preferred shares with a par value of P0.01 per share, and 3 billion class B preferred shares with a par value of P1 per share.

Investments

Meanwhile, MPIC President Jose Ma. Lim said the company plans to invest about P2 billion in a solid waste project in Bulacan by putting up a sanitary landfill.

"But everything is still at the discussion stage," he told reporters.

Aside from this, MPIC is also nearing the conclusion of separate deals involving the purchase of shares in power retailer Manila Electric Co. (Meralco). According to Lim, the company is in talks with potential sellers such as First Pacific and the Beneficial Trust Fund (BTF) of the Philippine Long Distance Telephone Co. and that an agreement can be reached this month.

"The talks are ongoing because the market values of Meralco and MPIC are still moving," he said. Meralco and MPIC shares were valued at P107 and P4.85 a piece, respectively, at the end of Thursday's trading at the stock market.

MPIC is eyeing to buy BTF's 10.17-percent stake in Meralco, as well as First Pacific's undisclosed ownership in the power retailer. The company is planning to sell shares to raise proceeds for the acquisition.

In total, BTF invested about P10.3 billion in Meralco.