SM Investments Corp. is looking to further expand its portfolio investments, according to Frederic DyBuncio, company president.
Speaking at the company’s shareholders meeting, DyBuncio said these investments now account for 7 percent of the group’s consolidated income.
“Among them is a heritage bake shop chain Goldilocks, and 2Go, the leading logistics company in the country. We believe these companies have strong assets, strong growth potential, and synergize well with our other businesses,” he said.
DyBuncio added the group’s acquisition of 81 percent in Allfirst Equity Holdings Inc., which holds the rights to develop the Tiwi and Mak-Ban geothermal steam fields in Albay and in Laguna-Batangas areas, will add “significant and sustainable geothermal steam energy related assets to the portfolio.”
“Our acquisition in the Philippines geothermal production company reflects our commitment to sustainability and a strong support to promote clean energy. This acquisition will further enhance our sustainability portfolio and exposure. It is a one-off transaction even as you continue to be cognizant of companies in the Philippines that have the potential for high growth in the country,” he said.
Allfirst Equity is the holding company for Philippine Geothermal Production Co. Inc. (PGPC), which operates the Tiwi and Mak-Ban steam fields. Together, they generate geothermal steam sufficient to produce approximately 300 megawatts of electricity.
SM Investments is acquiring Allfirst Equity in a share-swap transaction based on a P26.6-billion enterprise valuation of PGPC, resulting in the issuance of 17.4 million SM Investments shares based on a 60-day volume weighted average price of the company at P903.88 per share.
DyBuncio earlier said the transaction will bring SM Investments’ ownership in PGPC to 100 percent.
He said the valuation for the transaction is based only on the cash flow of the existing geothermal steam fields and does not include any value to the other concession areas in the portfolio of PGPC which are currently in the developmental stage.
SM Investments shareholders approved the transaction Wednesday. – Ruelle Castro
