Maharlika eyes P4-B investments before year-end
MIC President and Chief Executive Officer Rafael Consing Jr. said the fund is evaluating opportunities in utilities and infrastructure, industrials, and agriculture, financing the country’s strategic petroleum reserve with Philippine National Oil Co. as well as other strategic priorities including port development and the Department of Energy’s strategic fuel reserve program.
Maharlika Investment Corp. (MIC), the manager of the Philippines’ sovereign wealth fund, is considering up to three additional investments worth as much as P4 billion before the end of 2026, following its decision to shelve a proposed P19.7-billion investment in the holding company of the country’s power grid operator.
MIC president and chief executive officer Rafael Consing Jr. said the fund is evaluating opportunities in utilities and infrastructure, industrials and agriculture. Any investment will remain subject to approval by its board of directors.
Won’t proceed with buying 20% SGP equity interest
The agency confirmed on Thursday, 5 November, that it would not proceed for now with its proposed acquisition of an approximately 20-percent equity interest in Synergy Grid & Development Philippines Inc. (SGP), which indirectly controls the National Grid Corp. of the Philippines (NGCP).
MIC said the decision followed its continuing assessment of the transaction’s terms during detailed negotiations, taking into account its investment mandate, priorities and responsibility to manage public funds prudently.
Consing stressed that the government’s commitment to a secure and reliable transmission network remains unchanged, adding that the decision would not affect SGP’s financial position or NGCP’s operations.
The proposed deal would have given MIC an approximately 20-percent stake in SGP through convertible preferred shares, as well as the right to elect two directors to its expanded nine-member board. MIC previously disclosed owning 0.96 percent of SGP’s outstanding shares.
Consider other strategic priorites
Chinabank Capital Corp. managing director Juan Paolo Colet suggested that Maharlika consider other strategic priorities, including port development and the Department of Energy’s strategic fuel reserve program. He also cited regulatory improvements and faster right-of-way acquisitions as ways to support grid infrastructure.
However, Ateneo Center for Economic Research and Development senior research fellow Ser Percival Peña-Reyes described the decision as a missed opportunity to establish a strategic presence in the transmission sector, raising concerns about the fund’s investment execution and ability to complete major transactions.