Grid operator plans share sale

Manila Standard Today
By Alena Mae S. Flores | Posted on July 16, 2012 | 12:01am 

National Grid Corporation of the Philippines, operator of the country’s transmission network, is reviewing a plan to offer the shares of Synergy Grid & Development Philippines Inc. to the public to comply with its franchise requirement.

“It can be the subsidiary who’ll do the [public offering] for NGCP. It doesn’t have to be NGCP directly. We’re doing it because we have to comply with the requirements of the franchise,” Joseph Ferdinand Dechavez, National Grid senior adviser to the president, told reporters.

A group of National Grid president Henry Sy Jr. acquired a 45.5-percent stake in Synergy Grid, formerly UEM Development Philippines Inc. in 2010. Sy’s group amended the company’s primary purpose from a company originally engaged in general construction and other allied businesses to one engaged in power, energy, utilities and infrastructure.

Dechavez said National Grid could start increasing its public float as soon as the share swap agreement with the shareholders of National Grid was completed.

Synergy has increased its authorized capital stock to P215 million from P50 million and approved a share swap, in which 100 million common shares are be issued to stockholders of Pacifica 21 Holdings Inc. and One Taipan Holdings in exchange for their shares in the corporations.

Pacifica 21 owns controlling shares in Calaca High Power Corp., which in turn owns 30 percent of National Grid. One Taipan owns controlling shares in Monte Oro Grid Resources Corp., which holds 30 percent of National Grid. The balance of 40 percent is owned by State Grid Corporation of China.

“The share swap is undertaken to implement the intent of the parties to combine their resources and competencies in high growth industries, with our company as the parent vehicle,” Sy said in his 2011 chairman and president’s report for Synergy.

Synergy will own 68.34 percent of Pacifica and 100 percent of One Taipan once the share swap is completed.

The swap, however, has not been fully executed pending the delivery of all conditions agreed by the parties involved.

Around 7 percent of Synergy’s shares are listed at the stock market. The law granting the National Grid a franchise to engage in the business of transmitting electricity requires the utility to list at least 20 percent of its shares at the stock market within 10 years after it started operations.

National Grid took over the operations of National Transmission Corp. on Jan. 15, 2009. National Grid won the right to manage and operate the country’s transmission highway with its bid of $3.95 billion during the bidding in 2008.

The law also states the listing in the PSE of any company which directly or indirectly owns or control at least 30 percent of the outstanding shares of the stock of the National Grid will be considered a compliance of the listing requirement.    source