MANILA - Metro Pacific Investments Corp. (MPIC), a unit of Hong Kong's First Pacific Co. Ltd., is not closing its doors to buying more shares in power firm Manila Electric Co. (Meralco), even after the completion of a potential P22.4-billion deal to acquire an additional 6.7% stake from the Lopez Group.

At the special shareholders' meeting held Thursday, the company stressed that it remains optimistic about the growth prospects of Meralco, which it expects to provide an attractive return in the future.

"We do not preclude buying more shares from Meralco," said MPIC Chairman Manuel Pangilinan.

MPIC assured investors that its parent firm, First Pacific, would fully support the possible acquisition of the Lopez Group's Meralco shares should it materialize next year.

"First Pacific has expressed its willingness to give it support. As to how this support will be given, this will have to be discussed with First Pacific," said MPIC President Jose Ma. Lim.

Lim added that MPIC intends to stick to the March 31, 2010 deadline for its decision on the Meralco shares. "We expect that the transactions will be closed by then, and reach the call option decision by then."

Robin Nicholson, Executive Director of First Pacific, said that Meralco's bright prospects outweighed any doubt that MPIC would bail out of the proposed acquisition.

"Clearly we like Meralco. We are very confident that it will do well, as it has shown tremendous performance. There is no reason for us to believe that this won't be the case in the future," he said.

MPIC posted a consolidated net income of P2.09 billion for the first 9 months of 2009, up from P64 million a year ago, on the back of the strong performance of all its units.

Tender offer

Officials present at Thursday's shareholders' meeting refused to further comment on allegations made by Government Service Insurance System (GSIS) President Winston Garcia that MPIC had skirted the tender offer rule by forging a P11.22-billion loan agreement with the Lopez Group with a call option until March 31, 2010, instead of paying cash for the entuire 6.5% stake.

Garcia had threatened to sue Pangilinan if MPIC would not buy the GSIS' remaining 4% stake in the power retailer. The tender offer rule provides any individual or group who acquires a 35% stake in a listed company within the span of a year must offer to buy out other shareholders at the same price agreed upon with the block seller.

In a statement released on Wednesday, MPIC insisted it cannot be forced to make a tender offer since the Securities Regulation Code exempts open market purchases from such obligation.

MPIC said that while Pilipino Telephone Co. bought 20% of Meralco from the Lopez Group, the current holdings of MPIC were bought in the open market.