San Miguel Corp had agreed to sell its 27.1% stake in Manila Electric Company (Meralco). The latter is the biggest power retailer in the Philippines. The sale of the San Miguel stake in Meralco to local conglomerate JG Summit Holdings Inc. was priced approximately USD2 billion.

The proceeds of the sale would be used to boost San Miguel's strategy to raise funds for infrastructure projects.

The company did not disclose the valued of the deal. However, the stake of San Miguel in Meralco was valued PHP87 billion at the close of trading on Monday at PHP286 per share piece. Credit Suisse was hired to be the adviser of San Miguel for the transaction.

JG Summit could not be reached immediately to comment on the report.

After San Miguel disclosed the transaction to the Manila Stock Exchange, Meralco's shares went up to 4.4% higher. San Miguel shares were up 0.4% while JG Summit lost 1.8% as the stock market index PSI slid nearly 3%.