I. Marketing Background
The Manila Electric Company, also known as Meralco, is the Philippines' largest distributor of electrical power.
A. MERALCO is an investor-owned electric utility serving roughly a quarter of the estimated 94 million population of the Republic of the Philippines.
1. Estimated 94 million population of the Republic of the Philippines.
2. Meralco marches on to its 108th year of service in 2011. Consistently in the list of the Philippines’ top five corporations and cited among Asia’s finest, Meralco today serves over 4.8 million residential, commercial and industrial customers. It is strategically located to serve the country’s ...view middle of the document...
2. R E - E N E R G I Z E D After a stellar year, Meralco is re-energized and ready to pursue new opportunities that will accelerate growth in the longterm. Despite unprecedented challenges in the past, we have prevailed, and more importantly, thrived. Thanks to the support ofour shareholders and our unwavering faith in the corporate values that have sustained us through the years. We look forward to a brighter future strengthened by our strategic pillars and the extraordinary commitment of our leadership. An empowered, enlightened Meralco is ready to seize it. A new day has come.
II. Competetive Analysis
A. This company did not have any competitors, because they are the only one who serves our electricity over manila and some provinces. But the provider of electricity at provinces is only the branch/representative of Meralco.
B.MANILA - (UPDATE 3, 7:44 p.m.) San Miguel Corp (SMC) today said it is selling its shares in Manila Electric Co (Meralco).
In a disclosure to the Philippine Stock Exchange, the diversifying food-and-beverage conglomerate said it has placed 63,333,330 Meralco common shares at P270 each. SMC aims to raise P17.370 billion from the transaction.
The shares will be crossed at the PSE today. Deutsche Bank AG (Hong Kong branch) and Standard Chartered Securities (Singapore) Pte Ltd are the placing agents.
Meralco was down 8.2 percent to P277.60 apiece. It was the most actively traded stock today. SMC was down 0.34 percent to 87.50.
According to Bloomberg, this is the third biggest asset sale in the Philippines, a fact that SMC's top executive, Ramon S. Ang acknowledges.
“We were really lucky with the Meralco purchase,” Ang said at San Miguel’s Manila headquarters. “I meet management and we sit down and plan,” he was quoted as saying, when asked what he does first after a takeover. “I make sure I’m nice to them.” In 2008, SMC was able to buy its initial stake in Meralco from the Government Service Insurance System (GSIS) for P90 each when the utility's share price was trading at P45 each.
THE Manila Electric Co. (Meralco) registered a 2.3-percent electricity sales volume in the months of January to September this year, the utility’s president said last week. “Our sales were up by 2.3 percent, barely soft because of cooler temperature in the first four to five months of the year and brought about by the effects of Typhoon Glenda,” Meralco President and CEO Oscar Reyes said. Electricity sales, which comprised 99 percent of Meralco’s total...