Maharlika Corp. shelled out P19.5 billion for NGCP stake
MANILA, Philippines — The Maharlika Investment Corp. (MIC) has invested P19.5 billion to secure two seats in the National Grid Corporation of the Philippines (NGCP), corresponding to 20% stake.
This marks the inaugural investment of the Maharlika Investment Fund (MIF).
At a press briefing on Tuesday, January 28, MIC president and CEO Rafael Consing Jr. said the issue price of the purchase was P15 per preferred share, which will then yield a 6.5% divident over the first three years.
Timeline and terms of the deal. The transaction documents must be signed within 90 days, with a possible extension of another 90 days if necessary.
This gives MIC a maximum of 180 days to finalize the deal with the Synergy Grid and Development Philippines Inc (SGP), the conduit for MIC purchase.
As of now, the MIC has not appointed a representative to the NGCP board.
Funding and allocation. The investment is funded by contributions to Maharlika’s capital. These are from:
- Development Bank of the Philippines (P25 billion)
- Land Bank of the Philippines (P50 billion).
Consing said the funds are entirely for primary shares.
“All the capital we invested went straight to the company to support the rollout of NGCP’s CAPEX (capital expenditures),” Consing said in Filipino. CAPEX refers to funds allocated for the purchase of long-term assets.
Future investments. The MIC is also exploring other investments. Memoranda of understanding have been signed with Palawan and Mindoro to support the development of the provinces’ power grids.
“There has been negligible investment in these areas over the past years, and we feel that investing in these island grids would in fact also spur development, but this time, driven by the countryside,” Consing said.
He bared that another major investment is in the pipeline, which cuold come as early as February.
“Intuitively, I'd say in the next 30 days we could have another one,” he said in an ambush interview following the briefing,
He added that the MIC aims to make three to four material investments in 2025.
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