In a strategic move to bolster its influence over the nation’s power grid, the Maharlika Investment Corporation (MIC) has committed PHP19.7 billion to secure a 20% stake in the National Grid Corporation of the Philippines (NGCP). The deal, signed in the presence of President Ferdinand R. Marcos Jr., was formalized with Synergy Grid and Development Philippines Inc. (SGP) at Malacañang on January 27, 2025.
MIC’s investment will be channeled into purchasing preferred shares from SGP at PHP15 each, offering a guaranteed dividend yield exceeding 6.5% for the initial three years. Following this period, MIC has the option to convert these shares into common shares, enhancing its control and flexibility within NGCP.
The transaction is expected to be completed within the next 90 days, with MIC gaining two board seats in both SGP and NGCP. MIC President and CEO Rafael Consing Jr. emphasized that the investment will directly support NGCP’s capital expenditure rollouts, as all funds will be invested as primary shares.
Additionally, MIC is considering the acquisition of shares from the State Grid Corporation of China (SGCC), which currently holds a 40% stake in NGCP. Although no discussions have been initiated with SGCC, Consing expressed openness to such a move if the opportunity arises.
Looking forward, MIC is poised to announce another significant investment within the next 30 days, signaling a proactive approach to expanding its portfolio and influence in key sectors.