The Maharlika Investment Corporation (MIC) has acquired a 20% stake in Synergy Grid and Development Philippines Inc. (SGP), securing two board seats in SGP and another two in the National Grid Corporation of the Philippines (NGCP).
This landmark investment, announced by the Presidential Communications Office (PCO), marks a significant step toward enhancing government influence over the country’s critical power infrastructure. The initiative aims to ensure reliable and affordable energy access for all Filipinos.
Since January 2009, NGCP has been the sole authority managing and operating the national transmission system under a franchise granted by Congress.
The signing of the binding term sheet between SGP and MIC was witnessed by President Ferdinand “Bongbong” Marcos Jr. at Malacañang Palace on Monday.
“Congratulations, everyone. I know it wasn’t easy. I think, in the end, we found a good solution to everyone’s concerns,” Marcos said during the ceremony, which included MIC President and CEO Rafael Consing Jr. and SGP Chairman Henry Sy Jr.
The PCO confirmed that MIC will subscribe to preferred shares offered by SGP, which holds a 40.2% effective ownership interest in NGCP, the country’s primary power grid operator.
According to Consing, the acquisition will allow MIC to hold two of nine board seats at SGP, following an increase in total seats from seven to nine. Similarly, MIC will secure two of 15 board seats in NGCP, after expanding the total from 10 to 15.
“Once the acquisition is completed, the government gains direct representation in both SGP and NGCP, ensuring a stronger voice in the management of critical power infrastructure,” Consing said.
Despite the announcement, SGP’s share price dropped on Monday, January 27, closing at ₱10.98 per share, a decline of ₱1.02 or 8.50% from last Friday’s close of ₱12.00 per share.