SM Investments Corp. to acquire Philippine Geothermal Production Co.
Makban geothermal power plant, Philippines (source: Mitsubishi Power)
Carlo Cariaga
4 Apr 2022
The acquisition grants SMIC 100% ownership of PGPC which operates the Tiwi and Makban geothermal steam fields in the Philippines.
In a press release, it was announced that the Board of Directors of SM Investments Corporation (SMIC) has approved the acquisition of the 81% stake of Philippine Geothermal Production Company, Inc. (PGPC) from its holding company, Allfirst Equity Holdings Inc. in exchange for shares in SMIC.
This transaction will bring SMIC’s ownership in PGPC to 100%. PGPC operates the Tiwi and Mak-ban geothermal steam fields in the Philippines. Both steam fields have been in operation since 1979 and have a combined capacity of 300 MWe. In addition to the producing steam fields, PGPC also holds concession rights to several greenfield sites in varying stages of development or exploration.
The transaction will be structured as a share swap based on a Php 26.6 billion (approx. USD 517.9 million) enterprise valuation of PGPC, resulting in the issuance of 17.4 million SMIC shares.
“As a leading sustainability advocate, SMIC is pleased to invest directly in clean renewable energy-related production, which is a national priority and aligned with our commitments to environmental stewardship and to tackling climate change. Renewable geothermal energy production contributes to carbon reduction efforts and is aligned to UN Sustainability Goals,” said SMIC President and CEO Frederic C. DyBuncio.
The transaction will be subject to approval by the regulators and SMIC shareholders at the company’s annual shareholders meeting on 27 April 2022. It is expected to be completed by the 3rd quarter of 2022.
SM Investments Corporation is a leading Philippine company that is invested in market-leading businesses in retail, banking, and property. It also invests in ventures that capture high growth opportunities in the emerging Philippine economy.
Source: PublicNow.com
