The country’s largest conglomerate, SM Investments Corp., is taking 100 percent control of Philippine Geothermal Production Company Inc. (PGPC), operator of pioneering commercial-scale geothermal steam fields Tiwi and Mak-Ban through a P15.76-billion share-swap deal with affiliates.
In a disclosure to the Philippine Stock Exchange on Tuesday, SMIC said it had received approval from the Securities and Exchange Commission to acquire the 81 percent stake held by related parties in Allfirst Equity Holdings Inc (Allfirst), the holding company for PGPC, in exchange for shares in SMIC.
The P15.76-billion transaction will involve the issuance of 17.44 million new shares to the sellers, equivalent to 1.4 percent of shares outstanding in SMIC.
Together, Tiwi and Makban generate geothermal steam sufficient to produce about 300 megawatts of electricity. In addition to its two producing steam fields, PGPC also has several other greenfield concession areas for geothermal steam production which it intends to develop in the future.
“The acquisition of PGPC is sizeable, accretive to our shareholders, and a strong strategic fit with our portfolio of investments in high growth sectors in the Philippines. It further reinforces the SM Group’s commitment to sustainability, good governance and acting as a catalyst for responsible development in the communities we serve,” said Frederic Dybuncio, CEO of SMIC.
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