The planned initial public offering (IPO) of the SMC Global Power Holdings Corp., has been pushed back again following the conflict with the Power Sector Assets and Liabilities Management Corp (PSALM) over the management contracts for Ilijan and Sual plants.
“With this problem, we cannot conduct an IPO because of Ilijan and Sual,” San Miguel president Ramon Ang told the Manila Standard.
PSALM discontinued San Miguel’s independent power producer administrator agreements because of alleged unsettled payments with the Ilijan combined cycle power plant.
San Miguel, however, said that they have been paying its fees to the government.
In 2010, the San Miguel South Premier Development Corp. won the bid for the administrative contract over the Ilijan power plant.
Meanwhile, the company became the administrator of the Sual power plant after winning the bid in 2008.
The Sual plant is the largest coal-fired power plant in the country based on installed capacity which is operated by Team Energy.
In 2013, San Miguel announced the plan to raise $700 million from the planned IPO but decided to defer it in 2014.
“The equity value of our power generation company is $1.5 billion. If we sell at least 49 percent, we will raise about $700 million,” Ang said.