Synergy Grid & Development Phils. Inc. (SGP), which indirectly owns a majority stake in the National Grid Corporation of the Philippines (NGCP), received the go-ahead of the Securities and Exchange Commission (SEC) to proceed with its P1.15-billion follow-on public offering.
The publicly-listed firm said Tuesday that it received the SEC’s approval last October 7. The price offer range is anywhere from P15 to P25 per share.
“The Securities and Exchange Commission favorably considered the Registration Statement filed by the company covering the registration of securities of up to P1,154,500,000 common shares with a par value of P1 per share to be offered to the public, at an offer price of P15 up to P25 per offer share.”
The shares will be listed and traded on the Philippine Stock Exchange (PSE).
Under NGCP’s franchise, NGCP can undertake public listing or in substitution submit proof of the listing of any company that owns or controls at least 30 percent of NGCP’s outstanding capital stock. This can be done through a share swap transaction and follow-on offering of 20 percent of SGP shares.
NGCP is partly owned by Monte Oro Grid Resources Corporation (MOGRC) and Calaca High Power Corporation (CHPC), with each company owning 30 percent plus one in the issued shares of NGCP. In turn, OneTaipan Holdings Inc. and Pacifica21 Holdings Inc. own 100 percent of MOGRC and CHPC.
Henry Sy Jr. owns 67 percent of OneTaipan while Robert Coyuito Jr. owns 65 percent of Pacifica21.
The shares of stocks of Sy and Coyuito in the two firms will be swapped with shares from SGP, which may lead to MOGRC and CHPC becoming indirect subsidiaries of SGP and the latter gaining indirect control of NGCP.
SGP will now own shares in OneTaipan and Pacifica21, which are shareholders in MOGRC and CHPC, which, in turn, collectively own more than 60 percent of NGCP shares, thereby creating some form of indirect control of SGP in NGCP.
NGCP has informed the Energy Regulatory Commission that the share swap transactions have been completed. It would only have to make a public offering of its shares, through a follow-on offering of up to 20 percent of its shares, to meet the minimum public offering requirement under SEC rules for SGP to remain a listed company.
In view of the share swap transaction, NGCP sought clarification from the ERC if its decision does not prohibit other mode of compliance, such as the listing of any company in the PSE which owns or controls at least 30 percent of the outstanding capital stock of NGCP, which can be achieved through a backdoor listing.
The ERC has yet to issue a decision.
Damaged transmission lines
Meanwhile, the NGCP said Tuesday that six transmission lines in Northern Luzon were damaged by typhoon “Maring”.
These are the Lal-lo-Sta. Ana 69kV Line, Bacnotan-Bulala 69kV Line, Bauang-San Fabian 69kV Line, Tuguegarao-Magapit 69kV Line, San Esteban-Bangued 69kV Line, and Labrador-Bolinao 69kV Line.
The NGCP has mobilized its line crews and is currently conducting patrols to inspect and assess the impact of the severe tropical storm to its operations and facilities, and simultaneous restoration activities are being conducted on the areas already accessible. “The loss of power may be caused by affected transmission facilities of NGCP or distribution facilities of local distribution utilities or electric cooperatives (ECs). Specific cities and municipalities affected by the power interruptions are determined by concerned distribution utilities, unless the outage affects the entire franchise area,” it said.
The National Electrification Administration said 34 ECs were affected by the tropical storm in Regions 1, 2, 3, Cordillera Administrative Region, and Region 4-A.