SMIC gets SEC approval to acquire 81% stake in PGPC holding company

Sy-led SM Investments Corp. (SMIC) has secured the approval of the Securities and Exchange Commission (SEC) to acquire a majority stake in Allfirst Equity Holdings Inc. (Allfirst) for P15.76 billion.

SMIC said the corporate regulator approved the acquisition of a 81% stake in Allfirst, the holding company for the Philippine Geothermal Production Company Inc. (PGPC). This will bring SMIC’s PGCP ownership to 100%.

PGCP currently operates the Tiwi steam field or the first geothermal steam field development in Southeast Asia and the Mak-Ban steam field. Both produce approximately 300 megawatts of electricity.

The transaction will involve the issuance of 17.44 million new shares to the sellers, translating to 1.4% of shares outstanding in SMIC.

“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,” SMIC president and chief executive officer Frederic Dybuncio said in an emailed statement.

“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,” he added.

SMIC serves as the holding company of the SM Group which has interests in retail, property, and banking.

Its subsidiaries include The SM Store, SM Supermarket, SM Hypermarket, SaveMore, Walter Mart Supermarket Inc., Alfamart, SM Prime Holdings Inc., BDO Unibank Inc., and China Banking Corp.

It also has investments in commercial buildings (Neo Group, Philippine Urban Living Solutions, CityMall Commercial Centers Inc.); leisure (Belle Corporation); logistics (2Go Group Inc., Airspeed); food (Goldilocks); and mining (Atlas Consolidated Mining & Development Corp.)—AOL, GMA News