The Market Monitor Minding the Nation's Business
By Riza Lozada
Metro Pacific Investment Corp. (MPIC) acquired 84,012 common shares in Indra Philippines, Inc. (Indra) from the Manila Electric Company (MERALCO) for P365.525 million.Meralco reported to the stock exchange it completed the sale to MPIC noting “the said sale represents 24.95 percent of the outstanding capital stock of Indra and reduces Meralco’s stake therein to 24.95 percent.”The Board of Directors of MPIC approved the sale in December 19 last year.
“Indra has worked on a number of large systems projects for various MPIC portfolio companies. MPIC is now seeking to further commercialize the expertise developed as part of these projects. This will be a modestinvestment for MPIC but it is expected to yield strong returns serving business and governmentsectors that MPIC is already familiar with,” the report said.
Economic benefits are expected to accrue to MPIC as a shareholder of Indra Phils. as it expands its business in the Philippines and in South East Asia, MPIC added.Indra Phils. is a subsidiary of Indra Sistemas, S.A., which has international knowledge, experi-ence and track record in the in-formation technology business.
Indra Phils., which has been operating in the Philippines for the past 18 years, is one of the leading provider of information technology solutions to vari-ous businesses and industries in the Philippines, with engage-ments in utilities and telecom-munications, financial services and public administration.
The share purchase agree-ment, which accounts for 24.95 percent of the total out-standing shares of the com-pany, has terms of share price at P3,886.65 per share and payable in cash in full pay-ment upon execution of the Share Purchase Agreement. MPIC also disclosed that “in view of the fact that MPIC and Meralco are related entities, with MPIC having 32.48 per-cent direct and indirect interest in Meralco, the purchase price consideration was determined after a valuation process con-ducted by CLSA as an inde-pendent third party appraiser.” MPIC, Meralco, Indra Sistemas S.A. and Indra Phils. also entered into a shareholders’ agreement to govern their relationship with respect to the management and operation of Indra Phils.