Maharlika secures stake, board seats in SGP, NGCP

The Maharlika Investment Corporation has secured a 20% stake in Synergy Grid and Development Philippines Inc. (SGP), giving it two board seats in the company and another two in the National Grid Corporation of the Philippines (NGCP).

According to the Presidential Communications Office, Maharlika's maiden investment represented an opportunity for the government to regain greater influence over the country's critical power infrastructure, which aims to guarantee that every Filipino has access to reliable and affordable power.

Since January 2009, the NGCP has exercised full authority over the management and operations of the nationwide transmission system under a franchise granted by Congress.

President Ferdinand ''Bongbong'' Marcos Jr. witnessed the signing of the binding term sheet between SGP and MIC at the Malacañang Palace on Monday afternoon.

"Congratulations, everyone. I know it wasn't easy. I think, in the end, we found a good solution to everyone's concern," Marcos said during the signing of the agreement between MIC president and chief executive officer Rafael Consing, Jr. and SGP chairman Henry Sy, Jr.

The PCO said the MIC will subscribe to preferred shares offered by the SGP. It said the SGP holds a 40.2% effective ownership interest in NGCP, which is the country's power grid operator. 

Consing said the deal would grant MIC two board seats each at SGP and NGCP.

"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," Consing said.

Shares in SGP closed Monday, January 27 at P10.98 apiece, down by P1.02 or 8.50% from last Friday’s finish of P12.00 per share.—LDF/NB, GMA Integrated News