MANILA - Pilipino Telephone Corp. (Piltel), the PLDT Group's holding company for energy investments, has completed Tuesday the acquisition of a 20% stake in power distributor Manila Electric Co. (Meralco).

Piltel said it acquired 223 million common shares of Meralco from the Lopez family's First Philippine Utilities Corp. via a special block sale executed at the Philippine Stock Exchange.

It bought the shares for a total cash consideration of P20.07 billion.

The completion marks Piltel's formal exit from the telecommunications business and foray into the energy sector.

Piltel earlier owned the 'Talk 'N Text' brand which has been folded under the wing of affiliate Smart Telecommunications Inc., also a subsidiary of the Philippine Long Distance Telephone Co. (PLDT).

Officials of PLDT consider Piltel's purchase into Meralco a strategic investment for the group "because of potential opportunities for operational and business synergies and new revenue streams and cost savings for both the companies."