Synergy infuses P12B into NGCP
Power grid holding firm Synergy Grid & Development Philippines Inc. on Wednesday announced its subscription to preferred shares of the country’s main transmission power, the National Grid Corp. of the Philippines (NGCP).
In a statement, Synergy said its total subscription of P12.24 billion at P60.10 per nonvoting preferred share would be paid in cash coming from the proceeds of its follow-on offering.
The amount will be used to fund capital expenditure programs of NGCP as well as other related expenses.
In turn, this will give Synergy a direct shareholding in NGCP of 9.241 percent of outstanding capital stock. It indirectly controls 60 percent of NGCP’s outstanding capital stock.
Synergy is the listed holding company of Henry Sy, Jr. and Robert Coyiuto, Jr.
“This amount will be a huge boost to fund NGCP’s capital expenditure, a huge chunk of which is on new transmission projects for the improvement, upgrading and expansion of the country’s power grid,” Sy said.
The deal will also allow Synergy to partake of dividends, apart from the dividends that it is already indirectly receiving from NGCP through holding companies.
In 2020 and 2021, NGCP declared an annual dividend of P12 billion, released on a quarterly basis.
NGCP is Synergy’s sole operating asset. It holds the sole and consecutive concession and franchise for the operation of the country’s transmission network, linking power generators and distribution utilities to deliver electricity to power distributors and cooperatives nationwide.
In the next 13 years, NGCP committed to invest about P440 billion across 211 projects that are aimed to support the growing electricity demand in the country.
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