ERC urges NGCP to pursue public offering

Danessa Rivera - The Philippine Star August 27, 2021 | 12:00am
https://www.philstar.com/business/2021/08/27/2122844/erc-urges-ngcp-pursue-public-offering

MANILA, Philippines — The Energy Regulatory Commission (ERC) said the National Grid Corp. of the Philippines (NGCP) can pursue public offering by any mode as long as it meets the public listing requirement under its franchise by November.

In a disclosure to the Philippine Stock Exchange yesterday, Synergy Grid and Development Philippines Inc. (SGP) – which indirectly owns majority of NGCP – said the power regulator granted its motion for clarification whether the grid operator can comply with the listing and public offering requirement under the alternative mode of compliance.

“NGCP can undertake public listing or in substitution submit proof of the listing of any company in the (exchange) which owns or controls at least 30 percent of its outstanding capital stock, as these manners of compliance are expressly provided under RA 9511,” said the disclosure, quoting the ERC order.

In the dispositive portion of the order, the ERC said NGCP’s compliance with the dispersal of ownership requirement would be determined based on Section 8 of Republic Act 9511 or NGCP’s franchise.

The power regulator also said its order “should not be taken as allowing or prohibiting any mode of ownership dispersal allowed under the law to be undertaken by NGCP as this was not made an issue in the entire proceedings.”

Moreover, the order said the deadline for the six-month extension period granted by the ERC is on Nov. 14.

Sought for comment, ERC commissioner Floresinda Digal said the clarification issued by the commission only directs NGCP to comply with the public offer requirement within the set deadline which ever route they may take, and that its submission for compliance would be deliberated upon by the ERC.