PH wealth fund buys 20% stake in national grid operator

This marks its maiden investment.

The Philippines’ Maharlika Investment Corporation (MIC) has made its first investment by acquiring a 20% stake in the National Grid Corporation of the Philippines (NGCP).

In a statement, the Presidential Communications Office said the binding offer was accepted by Synergy Grid and Development Philippines Inc. (SGP) that holds a 40.2% interest in NGCP. MIC, mandated to manage the Philippines’ sovereign wealth fund, will subscribe to preferred shares offered by SGP.

“Once the acquisition is completed, we shall be entitled to two out of nine seats in the SGP board, after the total seats are increased from seven to nine. At NGCP, the government gains representation through two out of 15 board seats, following an increase in the total seats from 10 to 15,” said MIC President and CEO Rafael Consing, Jr.

Consing said the flagship investment would safeguard the country’s power supply from external threats and disruptions, citing the need for the government to have a say in NGCP decisions.

In 2007, NGCP was granted a 25-year concession to operate the transmission system, with the possibility of renewal for an additional 25 years.

It operates the country’s power grid, whilst the Philippine government owns the transmission assets through the National Transmission Corporation.