MANILA - A determined Government Service Insurance System (GSIS) has formally asked the local corporate regulator to “compel” the Manny Pangilinan-led Metro Pacific Investments Corp. (MPIC) to make a tender offer for shareholders of Manila Electric Co. (Meralco).

In a statement, GSIS said it filed a petition on November 25  asking  the Securities and Exchange Commission (SEC) to step in following the recent deal between Metro Pacific and Lopez-led First Philippine Holdings Corp. (FPHC) over half of the clan’s 13.4% stake in Meralco.

Before this, GSIS had already filed a complaint with the Philippine Stock Exchange, asking for the suspension of Metro Pacific’s shares and for the firm’s delisting.

“Securities trading being vested with public interest must be subject to stringent regulations consistently and firmly implemented,” GSIS said in a statement. The state pension fund owns roughly 4% in the power utility.

“The scheme employed by MPIC and FPHC is not only contrary to law but also prejudicial and contrary to the interest of the public,” it added.

On November 5 Metro Pacific secured a 6.7% stake in Meralco when it matched the rival offer of Henry Sy Jr.’s TriRatna Holdings Corp. of P300 per share after exercising its right of first refusal.

The GSIS continues to stress that the loan, call option and standstill agreements between Metro Pacific and FPHC were just designed to conceal the true nature of the transaction.

Meanwhile, Metro Pacific already extended the short-term loan of P11.2 billion to the Lopezes, which will mature on June 30 next year. In exchange, Metro Pacific will receive an option to buy the Lopezes’s stake in Meralco by March 31 next year.

Pangilinan’s group also insists a tender offer is not required as no transaction or transfer of shares has occurred, as the option has yet to be exercised.

Under the Securities and Regulation Code, a tender offer should occur after a company acquires 35% of a listed corporation within a 12-month period.

Pangilinan’s group already controls 34.7% of Meralco through Metro Pacific (14.7%) and Philippine Long Distance Telephone Co. unit Pilipino Telephone Corp. (20%). The addition of the Lopez stake will increase the group’s holdings in Meralco to 41.4%.

If Metro Pacific exercises the call option next year, it will pay the full P22.4 billion for the Lopez stake.

Diversifying conglomerate San Miguel Corp., which is also interested in Meralco, directly owns 27%, though with its allies controls over 41%.

Shares of Meralco slipped 0.46% to end Thursday’s session at P215 apiece. Metro Pacific’s shares lost 3.57% to close at P2.70.