SMIC’s Philippine Geothermal Production Company acquisition gets green light

The consideration paid for the acquisition was around $284.8m.

Philippines’ SM Investments Corporation's (SMIC) acquisition of an 81% stake of related parties in Allfirst Equity Holdings Inc, the holding company for the Philippine Geothermal Production Company, Inc. (PGCP), has been approved by the Securities and Exchange Commission.

In a statement, SMIC said the total consideration paid for the transaction was around $284.8m (P15.76b) and involved the issuance of 17.44 million new shares to the company, equivalent to 1.4% of shares outstanding in SMIC.

Following the transaction, SMIC will hold 100% ownership in PGCP.

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“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,” said SMIC President and CEO Frederic C. Dybuncio.

PGCP operates the Tiwi and Mak-Ban steam fields who generate combined geothermal steam sufficient to produce around 300 megawatts of electricity. Tiwi is the first commercial-scale geothermal steam field development in Southeast Asia followed by Mak-Ban, which both operate since 1979.

The geothermal firm also has other greenfield concession areas for geothermal steam production which will be developed soon.

$1 = P55.34