SMIC prepares to acquire steam fields, eyes more energy deals
SM Investments Corp. (SMIC) moved closer to finalizing the P15.7-billion takeover of the Tiwi and Mak-Ban steam fields in Albay, giving the Sy family-led conglomerate a major footprint in the country’s energy sector.
During the company’s annual meeting on Wednesday, SM Investments’ shareholders approved the merger that would give the property, retail and banking group 100 percent of Allfirst Equity Holdings Inc, the owner of the geothermal assets.
SM Investments president and CEO Frederic DyBuncio said the acquisition was in line with their support for “more clean energy” while indicating they were open to other potential deals.
“It is a one-off transaction even as we continue to be cognizant of companies in the Philippines that have the potential for high growth in the country,” he said.
300-MW capacity
Allfirst is the holding company of Philippine Geothermal Production Co., the operator of the Tiwi and Mak-Ban steam fields, which have a combined capacity of 300 megawatts.
The company also has other concession areas that could be developed in the future, SM Investments said in an earlier statement.
SM Investments is one of the country’s largest companies. It owns supermarkets and department stores, shopping mall giant SM Prime Holdings Inc. and BDO Unibank Inc., the country’s largest lender.
DyBuncio said on Wednesday they would also continue expanding core business segments as the Philippines recovers from the COVID-19 pandemic.
“With the reopening of the economy, we see a continued increase in brick and mortar visits, leading to an increase in more foot traffic, which we already saw in the latter half of the year,” he said during the meeting.
He said SM Investments would also build on its online capabilities given the growth of e-commerce in the “long-term.”
SM Investments is a trillion-peso company based on market value. The company’s board declared a cash dividend of P6.25 per share payable on May 26 to stockholders of record as of May 13 this year.
It ended 2021 with a net income of P38.5 billion, up 65 percent, while revenues grew 9 percent to over P428 billion.
The banking segment, which includes China Banking Corp., accounted for 51 percent of earnings last year. Property contributed 25 percent; retail, 17 percent; remaining portfolio investments, 7 percent.
