THE Lopez Group is not yet keen on selling its remaining stake in the country’s largest power distribution utility Manila Electric Company (Meralco).

Oscar Lopez, chairman and chief executive officer of First Philippines Holdings Corp. (FPHC), said they would want higher prices for their remaining shares since the power retailer already started the implementation of the performance-based-rate (PBR) scheme.

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"We don’t have any plans (to sell remaining stakes) yet,” Lopez said during Thursday’s ceremonial turnover of the Mindanao geothermal power plants to Lopez-owned Energy Development Corp. (EDC) at the Makati Shangri-La Hotel.

The Lopez patriarch said they expect prices to further increase with the PBR.

“It’s not yet the right time because with the operation of PBR it could go even higher,” Lopez explained.

Asked if they are considering selling their remaining shares in Meralco, he said: “It could also be sold if the price is right.”

He also said that if ever they will decide to unload their shares they will sell it to the Philippine Long Distance Telephone Company (PLDT).

FPHC sold 20 percent of its Meralco stake to PLDT and Metro Pacific Investments Corp. (MPIC), which are both headed by Manuel Pangilinan.

In 2007, FPHC bought the 9.1 percent Meralco stake held by Spanish company Union Fenosa.

The combined shares of the Lopez-PLDT Group stood at 47 percent making the group the majority shareholders, while conglomerate San Miguel Corp. (SMC) controls 43 percent.

PLDT has the option to purchase the remaining shares of the Lopez Group in Meralco.

At present, the Lopezes have only 13.4 percent stake in Meralco from its original shareholding of 33.4 percent.

Meralco is more optimistic of its financial position this year with the approval of a higher distribution charge of P0.25 per kilowatt hour under the PBR system.

Rafael Andrada, the power firm’s treasurer, said Meralco's income will be further boosted by the approval of the PBR and they expect an additional revenues of about P500 million monthly or P3.5 billion for the remaining seven months starting June.

“The PBR approval… it should have an impact on our credit standing,” Andrada said. (MSN/Sunnex)