Metro Pacific Investments Corporation (MPIC) have secured from a syndicate of banks and its parent First Pacific Company the P22.4 billion it needs for its acquisition of 6.6 percent of Manila Electric Company from First Philippine Holdings Corporation.

In a disclosure to the Philippine Stock Exchange (PSE) Monday, MPIC said the funding agreement is subject to the requisite Board approvals and documentation.

“This will enable MPIC to fund the acquisition of the 6.6 percent Meralco Shares should it decide to exercise the Call Option,” MPIC said.

Meanwhile MPIC and First Pacific affiliate Pilipino Telephone Corporation, “are presently in discussion with regard to a proposed combination and reorganization of their respective shareholdings in Meralco, with a view to consolidating their Meralco shareholdings in a new holding company (Newco).

MPIC said “the terms of the reorganization are being finalized by MPIC and PILTEL and an announcement in this regard will be made shortly. Both parties are in the process of finalizing the required documentation and obtaining the necessary consents.”

Piltel had earlier acquired a 20 percent stake in Meralco also from the Lopez group. On the other hand, MPIC has acquired a 14.7 percent stake in Meralco from FPC and PLDT Benefincial Trust Fund.

In the meantime, MPIC reiterated that the Standstill Arrangement with the Lopez Group under the Amended, Consolidated and Restated Cooperation Agreement between the MPIC/PILTEL Group and the Lopez Group, serves to stabilize the ownership of Meralco.

Under the Standstill Arrangement, the Lopez Group agreed that for a period of three years, it will not sell or transfer any shares of voting common stock in Meralco which it owns except to MPIC (subject to permitted sale of insignificant number of Meralco shares to third persons under certain conditions).