Shareholders of SM Investments Corp. (SMIC), the holding firm of the Sy family, has approved the company’s acquisition of Philippine Geothermal Production Co. (PGPC)
During its annual stockholders’ meeting, shareholders also approved the merger of SMIC with Allfirst Equity Holdings, the holding company for Philippine Geothermal. SMIC will be the surviving entity.
The consideration to be paid for the geothermal firm has been deemed fair by the independent appraiser, the company said.
Philippine Geothermal operates the Tiwi and Mak-Ban steam fields. Tiwi is the first commercial-scale geothermal steam field development in Southeast Asia, followed by Mak-Ban, both in operation since 1979. Together they generate geothermal steam sufficient to produce approximately 300 megawatts of electricity.
In addition to its two producing steam fields, the company also has several other greenfield concession areas for geothermal steam production which it will develop.
“Our acquisition into PGPC reflects our commitment to sustainability, our strong support to promote clean energy and is aligned with our goals of environmental stewardship as a responsible company. This acquisition will further enhance our sustainability portfolio,” Frederic C. DyBuncio, SMIC president and CEO said.
“This investment fits our portfolio investment criteria. Renewable energy is a growing sector in which PGPC has potential to be a leading player, has good synergies with the SM group, operates on high standards of good governance and has a track record of responsible management.”
SMIC said it is optimistic about the outlook for business this year due to the revival in economic activity.
“We’ve always invested to expand even in challenging years, knowing the long term opportunities that the Philippines holds. We also know that we can fulfill the growing needs of millions to underserved Filipinos with a modern retail, integrated property development, financial access, or other emerging services,” DyBuncio said during the company’s stockholders’ meeting.