Some tycoons get what they want; others have to roll with the punches, though this isn’t unique to the Marcos administration.
Every other president since Marcos Sr., after all, has had a close circle of businessmen friends, cronies, posses or whatever they’re called. Even the profanity-laden Rody Duterte – he who vowed “to destroy the oligarchs” – had his well-loved and favored Davao Group, and whatever attempts to destroy whoever merely focused on those from Imperial Manila.
Now, under Marcos 2.0, we call them advisers, advising President BBM on what to do or what not to do.
Very early on, an unsolicited piece of advice, my sources say, was to break the natural monopoly of the National Grid Corp. of the Philippines, the country’s sole grid operator, led by tycoons Henry Sy Jr. and Robert Coyiuto Jr.
For years, other tycoons have also been eyeing NGCP, looking for a way to get into the picture or, if not, get one foot inside.
Fast forward to today. Here now is the country’s first sovereign wealth fund, Maharlika, announcing its historic and maiden investment, in NGCP no less. Could it be possible that in the future Maharlika would sell its stake or a portion of it to another investor – perhaps someone who has long been eyeing NGCP? There have been similar situations in the past, such as when GSIS sold its stake in Meralco.
It is possible, say my sources privy to the matter. Thus, in the future, NGCP may see other tycoons come into the picture.
I’m sure the lawyers of Sy and Coyiuto have put in place protective clauses in the deal but we never really know what can happen next, just as NGCP’s shareholders surely did not expect the Marcos administration to buy into their company.
Maharlika Investment Corp. president and CEO Joel Consing is already hinting that should the shares of the State Grid Corp. of China in NGCP be available, they would also be interested.
The next investment
After NGCP, what’s next for Maharlika?
Consing said they would make an announcement soon after the market absorbs the NGCP news. Another source hinted that there’s a couple of deals Maharlika is eyeing, although it wouldn’t be as big as NGCP.
Will our power situation improve?
With Maharlika getting a 20 percent stake in NGCP, will our power situation improve as promised by the Marcos administration?
Only time will tell but I’m not holding my breath.
The Philippine power industry, after all, is one big industry filled with moving parts.
The Energy Regulatory Commission, the power regulator, itself is filled with bureaucratic cobwebs, with decisions taking way too long to be handed down.
As Sy, in a recent hearing at the House of Representatives, said, there is indeed a need for stability not just in the power grid but also in supply, law, policy and regulation, for a more robust power industry.
“I strongly urge the DOE to look at the problem as a whole. The data is clear, 97 percent of the power interruptions from 2016 to 2023 was caused by problems in supply. We need stable, affordable base-load power. We need a comprehensive, aligned plan that considers the needs of all sectors. We are willing to be part of the solution, but transmission should not be the solution to everyone’s problems.”
Stock market curtain-raisers
Now that the first month of the year is almost over and the Chinese New Year has ushered in the Year of the Snake, investors are all eagerly awaiting who will be the first to debut in the Philippine stock market this 2025.
At the Bankers’ Night held early January, Philippine Stock Exchange (PSE) president Ramon Monzon said this year’s curtain-raisers could be Maynilad or Topline. Another source, however, said that Maynilad will likely wait until after the midterm elections in May to get a better grasp of the political situation, which could influence the regulatory environment.
Another market source said this year’s curtain-raiser could be Globe Telecom’s GCash. Asked about GCash’s IPO, PSE director Vivian Yuchengco, whom I bumped into in Makati recently, said that if GCash proceeds with its listing soon, it would indeed be a good curtain-raiser for the PSE as it would attract the foreign investors.
Whichever it is, investors are eagerly awaiting for the next market debutant to ring the bell.
As for Monzon, he says anytime is as good a time as any to list in the market.
One curtain-raiser can take the lead and others can follow, he said. We need to catch up with our neighbors, as we have long been lagging behind.
Malaysia had 46 IPOs from January to November last year while Thailand had 29. The Philippines had only three – NexGen, OceanaGold and Citicore.
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Email: eyesgonzales@gmail.com. Follow her on Twitter @eyesgonzales. Column archives at EyesWideOpen on FB.