MIC invests PHP19.5B for 20% stake in SGP, gaining two board seats

The Philippine government's Maharlika Investment Corporation (MIC) signed an agreement with Synergy Grid & Development Philippines Inc. (SGP) on Monday to purchase a 20% stake in SGP, which holds a 40.2% share in the National Grid Corporation of the Philippines (NGCP).

This acquisition is seen as a significant move toward strengthening government involvement in critical infrastructure and aligning with Philippine Development Plan goals.

MIC President Rafael Consing Jr. announced Tuesday that PHP19.5 billion will be invested to acquire preferred shares at PHP15 each from SGP, providing MIC with two board seats in both SGP and NGCP.

The investment includes a guaranteed dividend yield of over 6.5 percent for the first three years, after which it could convert into common shares, giving MIC greater control over its stake in NGCP.

MIC is also exploring other investments, including support for power grids in Palawan and Mindoro, aiming to make up to four material investments this year.