THE camp of Manuel V. Pangilinan scored a  victory Thursday night on the so-called battle for control of Manila Electric Co. ( Meralco) when it matched, through Metro Pacific Investments Corp., the rival offer of Henry Sy Jr’s TriRatna Holdings Corp., securing  for Pangilinan at least 41 percent ownership in the country’s largest power distributor.

“We were really interested in selling only half for now.  We want to keep a strategic presence in Meralco,” said Ibañez after the board finished deliberations, noting that the sale may reduce the FPHC’s board seats to just one from the present two.

At P300 per share, half of the 13.4-percent Lopez stake is valued at P22.4 billion. This is also a 35.75 percent premium over Meralco’s closing price of P221 Thursday.

Ibañez clarified that no purchase or sale has been made. He explained that as part of the deal, Metro Pacific will provide a short-term loan worth P11.2 billion to FPHC or its subsidiaries. The loan would be secured by Meralco and FirstGen shares. “There will be a call option granted to Metro Pacific by First Holdings on 74.7 million common shares of Meralco or approximately 6.7 percent of the outstanding common shares, and shall be exercisable at any time from the date the call option is granted until March 31, 2010,” said First Holdings in a statement.

Ibañez said Metro Pacific will be given the call option early next year. He said if Metro Pacific fully exercises the call option by the deadline, Metro Pacific will pay First Holdings the full P22.4 billion in cash to complete the purchase of the 6.7-percent Lopez stake.  

Once exercised, Pangilinan, who currently controls 34.7 percent of Meralco through Metro Pacific and Philippine Long Distance Telephone Co. will increase his group’s stake to over 41 percent making his group the single biggest shareholder in Meralco.  

Ibañez said the proceeds will mainly be used to pay off part of the P12 billion in debt held by First Holdings.

“We are planning to pay  down a $20 million dollar loan,” disclosed Ibañez.

Ibañez said both TriRatna and Metro Pacific were informed of the decision of First Holdings.

Meanwhile this latest development comes as no surprise to analyst who were fully expecting Metro Pacific to match  TriRatna’s offer.

Analysts said the reason Pangilinan’s group was buying Meralco shares was to protect its holdings  in PLDT- said to be a much more valuable investment.

Ibañez declined to comment on a timetable  to sell the other half of its Meralco stake.