Synergy Grid declares P1.4-billion dividend payment
Listed Synergy Grid and Development Philippines Inc. (SGP) on Thursday announced dividend payments of P1.4 billion for the third quarter.
SGP’s board approved cash dividends of P0.26 per share, similar to the previous quarter’s payout. Stockholders of record as of Oct. 5 will receive the dividends on Oct. 19.
“This follows the high dividend yield last quarter from the issuance of the preferred shares of National Grid Corporation of the Philippines (NGCP) in June, to which SGP subscribed to using the proceeds from its follow-on offering,” said SGP chair Henry Sy Jr.
SGP staged a follow-on offering last November in compliance with NGCP’s franchise undertakings. The grid operator is mandated to offer at least 20 percent of its outstanding capital stock to the public.
SGP vice chair Robert Coyiuto Jr. expressed its gratitude to the investing public “for its continued trust and partnership with SGP, which, in return, supports the ongoing transmission projects for the development of the country’s power grid being undertaken by NGCP.”
SGP indirectly controls 60 percent of the outstanding common shares of NGCP, its sole operating asset, with an effective common share interest of 40.2 percent. Likewise, SGP owns 203.2 million non-voting preferred shares in NGCP.
NGCP has a 25-year concession and a 50-year congressional franchise to operate the country’s transmission network.
One Taipan Holding Corp.’s Monte Oro Grid Resources Corp. and Pacific21’s Calaca High Power Corp., led by Sy and Coyiuto, respectively, own a 60-percent controlling stake in NGCP. Technical partner State Grid Corp. of China holds the remaining 40 percent.
In the next 13 years, NGCP is committed to investing approximately P440 billion across 211 projects aimed at supporting the growing electricity demand in the country and making the country’s power backbone reliable.
NGCP is targeting to complete before the end of the year the P52-billion Mindanao-Visayas Interconnection Project, which will link the Visayas and Mindanao power grids resulting in a single national grid.
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