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From Meralco to Rockwell—and Now, From Gas to Media?


How the Lopezes consolidated Rockwell under FPH by selling “precious” Meralco shares—and why First Gen’s ₱50‑b windfall invites comparisons today

Setting the stage: a deliberate reshuffle inside the Lopez Group

In the mid‑1990s, Rockwell Land’s ownership was split among Meralco, First Philippine Holdings (FPH), and Benpres (now Lopez Holdings, the same listed parent that controls ABS‑CBN). That tripartite structure—formalized when Rockwell’s capital was raised in September 1996—placed Meralco at 51% and the Lopez holding companies at 49% combined. 

A key hinge came in August 2009, when Benpres sold its 24.5% Rockwell stake to FPH for ~₱1.5 billion, lifting FPH's stake to 49% while Meralco remained at 51%. The move aligned Rockwell more tightly with FPH’s real‑estate strategy even as Benpres (Lopez Holdings today) focused on deleveraging. 

Benpres → Lopez Holdings (LPZ), parent of ABS‑CBN: Benpres Holdings Corporation rebranded as Lopez Holdings Corporation in 2010; ABS‑CBN is part of Lopez Holdings’ portfolio alongside FPH.

Selling “precious” Meralco to finance the pivot (2009–2010)

To strengthen liquidity and fund growth (including First Gen’s major bets like EDC), FPH monetized a large chunk of its Meralco stake:

  • 2009: FPH sold 223 million Meralco shares to the PLDT/First Pacific camp for ₱20.07 billion. 
  • March 30, 2010: Beacon Electric (MPIC + PLDT Communications & Energy Ventures) exercised its call option to buy 74.7 million Meralco shares from FPH at ₱300/share (≈₱22.4 billion). 

Oscar M. Lopez later framed these divestments as part of a wider capital strategy amid the EDC acquisition and the financial crisis—reducing exposure in distribution (Meralco) to reinforce generation and other core assets. 

The 2012 property dividend that unlocked Rockwell control

In May 2012, Meralco declared its 51% Rockwell stake as a property dividend to its own shareholders, allowing Rockwell to list by way of introduction on the PSE—no IPO, but thousands of new holders. Immediately post‑listing, FPH’s stake was ~52%. 

Over June–July 2012, Beacon transferred ~1.3 billion Rockwell shares to FPH as additional consideration for the 2010 Meralco sale (the 74.7 million shares at ₱300). Tranches priced at ₱2.01/share were crossed on the exchange, with extra blocks (84.5 m, 52.8 m) and purchases by the FPH Pension Fund (87.95 m). This lifted FPH to ~76%. 

In July 2012, FPH bought 681.646 million Rockwell shares from San Miguel at ₱2.01/share (≈₱1.37 billion), pushing FPH’s control to ~87%.
Recent Public Ownership Reports still show FPH ~86.6% of Rockwell—evidence that the consolidation stuck. 

Echoes of Meralco: First Gen’s ₱50‑b gas sale “windfall” (2025)

Fast forward: First Gen (FGEN) agreed to sell 60% of its Batangas gas portfolio (Santa Rita, San Lorenzo, San Gabriel, Avion, and the offshore LNG terminal) to Prime Infrastructure for ₱50 billion, retaining 40% and strategic involvement. Analysts and the press often describe the proceeds as a “windfall”, with FGEN publicly confirming delisting is merely an option under review—not a decision. 

Coverage emphasizes the Lopez Group’s plan to reinvest this cash into renewables (notably geothermal), while market commentary speculates on special dividends and capital redeployment inside the group—parallels to how Meralco cash helped cement Rockwell under FPH in 2012. 

Scale comparison: The Meralco disposals in 2009–2010 raised ~₱42 billion (₱20.07 b + ₱22.4 b). FGEN’s ₱50 b gas proceeds are comparable in magnitude, with the same potential to catalyze portfolio realignment—this time flowing from power toward other group priorities. 

Could ABS‑CBN be “fixed” under FPH—Rockwell‑style? (Analysis)

ABS‑CBN’s financials have improved but remain fragile post‑franchise loss: losses have narrowed materially (−55% YoY in 2024; −50% YoY in Q1 2025), yet cash‑flow pressure persists as the business re‑anchors around content partnerships and digital distribution. 

Market commentators have floated a Rockwell‑style fix: move ABS‑CBN from Lopez Holdings to FPH (for example, via a share swap) and use FGEN’s cash—potentially upstreamed via dividends—to stabilize ABS‑CBN’s operations, centralize governance, and signal lender‑friendly stewardship under FPH’s scale. To be clear, no definitive transaction has been announced; this is scenario analysis, not a confirmed plan. 

If pursued, such a structure would rhyme with 2012:

  1. Capital catalyst: A large, one‑off liquidity event (then: Meralco sales; now: FGEN gas proceeds). 
  2. Ownership realignment: Moving a crown‑jewel asset under FPH to align strategy, discipline, and scale (then: Rockwell; now: potentially ABS‑CBN). 
  3. Public signaling: A clean governance narrative to calm creditors, partners, and regulators, while preserving Lopez family control at the top via Lopez Holdings.

Again, this remains hypothetical. But in a year where FGEN’s ₱50‑b proceeds have already prompted discussions about delisting options and redeployment, it’s not unreasonable for the market to look for Rockwell‑style playbooks elsewhere in the Lopez portfolio. 

What we know—and what we don’t

  • Known facts:
    • FPH consolidated ~87% control of Rockwell in 2012 by leveraging liquidity from Meralco divestments and block purchases.
    • FGEN has closed a ₱50 billion sale of 60% of its gas business to Prime Infra, keeps 40%, and faces speculative chatter about delisting and special dividends; no definitive delisting plan has been announced.
    • Benpres is now Lopez Holdings, which controls ABS‑CBN and owns FPH—the same architecture that enabled the Rockwell consolidation. 

  • Not (yet) facts:
    • No official disclosure that ABS‑CBN will be folded into FPH. Any such move would require board approvals, regulatory filings, and market notices. Commentary pieces are analytical and speculative. 

Bottom line

By selling “precious” Meralco shares, the Lopezes re‑wired ownership to put Rockwell under FPH, where it has remained solidly controlled. In 2025, FGEN’s ₱50‑billion windfall invites comparisons: the cash scale is similar, the corporate levers are familiar, and the group’s history shows a willingness to use one‑off liquidity to reinforce core platforms. Whether that next chapter involves a Rockwell‑style fix for ABS‑CBN under FPH is still conjecture—but the playbook exists, the stakeholders are aligned under Lopez Holdings, and the market is already gaming out the possibilities.

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