The SM Investments Corporation (SMIC) has fully acquired the Philippine Geothermal Production Company Inc. (PGPC) after the Securities and Exchange Commission (SEC) approved a Php15.76 billion share swap deal.
In a disclosure to the Philippine Stock Exchange (PSE), SMIC said that SEC approved its acquisition of the 81% stake in related parties in Allfirst Equity Holdings Inc, the holding company of PGPC. This involves the issuance of 17.44 million new shares to the sellers.
The transaction would bring SMIC’s ownership in PGCP to 100%.
“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,” SMIC president and CEO Frederic Dybuncio said in a statement.
PGPC owns the Tiwi steam field in Albay and the MakBan steam field in Laguna and Batangas. Both in operation since 1979, the two fields generate steam to produce around 300 MW of power.
PGPC also has several greenfield concession areas for geothermal steam production.
SMIC first announced its plans to acquire the PGPC back in April.