The Energy Regulatory Commission (ERC) has declared the acquisition by the Synergy Grid & Development Philippines Inc. (SGP) of the National Grid Corporation of the Philippines’ (NGCP) outstanding capital stock meets the dispersal ownership requirement of Republic Act (RA) 9511.
“When SGP acquired indirect ownership of 40.20% of the outstanding capital stock of NGCP, the ERC declared NGCP as compliant with the requirement under Section 8 of Republic Act No. 9511,” SGP said in a disclosure to the Philippine Stock Exchange (PSE).
In an order released last June 21, the ERC said that “NGCP resorted to the second mode of compliance” under the law, wherein it states “that the listing in the PSE of of any company which directly or indirectly owns or controls at least 30% of the outstanding shares of stock of NGCP.”
“Therefore, when SGP acquired 67 percent of the total outstanding shares of stock of OneTaipan and Pacifica21, respectively, indirect ownership of 40.2 percent of the outstanding shares of stock of NGCP was acquired by SGP,” ERC said.
RA 9511 serves as the franchise law of NGCP. Under the law, NGCP is required to make a public offering of the shares representing at least 20% of its outstanding capital stock or higher within 10 years from the commencement of its operations in compliance with the requirements of the Securities and Exchange Commission and PSE.