In a strategic move to bolster its influence over the nation’s power infrastructure, the Maharlika Investment Corporation (MIC) has committed PHP19.7 billion to acquire a 20% stake in the National Grid Corporation of the Philippines (NGCP). The transaction was formalized in a ceremony attended by President Ferdinand R. Marcos Jr. at Malacañang on January 27, 2025, marking a pivotal moment for the government’s involvement in the energy sector.
MIC’s CEO, Rafael Consing Jr., disclosed during a press briefing that the investment would be channeled into purchasing preferred shares from Synergy Grid and Development Philippines Inc. (SGP), a major shareholder in NGCP, at PHP15 per share. These shares promise a dividend yield exceeding 6.5% for the initial three years, after which they could be converted into common shares, enhancing MIC’s control and flexibility within NGCP.
The deal, set to be completed within 90 days, will also grant MIC two board seats in both SGP and NGCP, reinforcing its strategic position in the country’s sole power transmission network. Consing emphasized that the investment would be in primary shares, directly supporting NGCP’s capital expenditure initiatives.
Looking ahead, MIC is not limiting its ambitions to this single acquisition. Consing hinted at potential interest in acquiring 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 should the opportunity arise.
Furthermore, MIC is poised to announce another significant investment within the next 30 days, signaling a broader strategy to expand its portfolio and influence across various sectors. This proactive approach underscores MIC’s role as a dynamic player in the Philippine economic landscape.