By Darryl John Esguerra

MANILA – The Maharlika Investment Corporation (MIC), the manager of the country’s first sovereign wealth fund, is set to invest PHP19.7 billion to acquire a 20-percent stake in the National Grid Corporation of the Philippines (NGCP), marking a significant step toward increasing government influence over the country’s power grid operations.
In a Palace press briefing Tuesday, MIC President and CEO Rafael Consing Jr. announced that the funds will be used to purchase preferred shares at PHP15 each from Synergy Grid and Development Philippines Inc. (SGP), a key stakeholder in NGCP.
The preferred shares come with a guaranteed dividend yield of over 6.5 percent for the first three years of the investment.
Consing explained that, after the initial three years, the investment could be converted into common shares, giving MIC greater flexibility and control over its stake in NGCP.
MIC said it is eyeing to finalize and sign transaction documents of its maiden investment within the next 90 days.
On Monday, Malacañang announced that SGP has accepted a binding offer from MIC to secure a foothold in NGCP. The deal will give MIC two board seats each in the SGP and NGCP, the country’s lone power transmission network.
According to Consing, the NGCP investment will be “100% primary shares.”
“Ang ibig sabihin po niyan is kapag primary shares po, lahat po ng capital na i-invest po natin, pupunta diretso sa kumpaniya para siya namang gamitin para pagsuporta sa rollout ng capex ng NGCP (Meaning, all capital invested will go directly to NGCP to support its capital expenditure rollouts),” he said.
China firm shares
Meanwhile, MIC said it is open to acquiring shares of the State Grid Corporation of China (SGCC) in the Philippines’ power grid.
SGCC holds a commanding 40 percent share in the NGCP.
“We have not spoken basically to the Chinese, we only saw this opportunity sa SGP level – we’re not having any discussions with the State Grid of China at this point in time. So, no conversations are occurring with them,” Consing said.
When pressed if the MIC is interested in acquiring the Chinese firm’s shares in the NGCP, Consing said: “If it becomes available, I think so, yes.”
More investments ahead
Consing also revealed that additional MIC investments are in the works.
While he did not provide specifics, he hinted that another significant deal could be announced in the next 30 days.
“We have, in fact, working on multiple transactions. In the next 30 days we could have another one,” he told reporters. (PNA)