Synergy Grid and Development Philippines Inc. (SGP) said it is subscribing to 203.63 million non-voting preferred shares of the National Grid Corporation of the Philippines (NGCP) in compliance with the conditions of the listed firm’s follow-on offering (FOO) last November.
NGCP will increase its capitalization while SGP will have a 9.241 -percent direct shareholding of NGCP’s outstanding capital stock.
SGP will be entitled to dividends, apart from the dividends that SGP indirectly receives from NGCP through holdings companies.
In 2020 and 2021, NGCP declared an annual dividend of P12 billion for its common shares, released on a quarterly basis.
At P60.10 per non-voting preferred share, SGP’s total subscription of almost P12.24 billion, will be paid in cash coming from the proceeds of the FOO that will be used to fund capital expenditure programs of NGCP as well as other related expenses.
“This amount will be a huge boost to fund NGCP’s capital expenditure, a huge chunk of which is on new transmission projects for the improvement, upgrading, and expansion of the country’s power grid,” said Henry Sy Jr., SGP chairman.
Robert Coyiuto, Jr., SGP vice chairman, said the move will ensure NGCP’s projects in the pipeline “will come into fruition and play a significant part in the country’s economic development.” – Jed Macapagal
