Synergy okays subscription to P12.24-b NGCP shares

By Alena Mae S. Flores – April 5, 2022, 6:40 pm
from manilastandard.net

Synergy Grid and Development Philippines Inc. said Tuesday its board approved the subscription to 203.63 million non-voting preferred shares to be issued by National Grid Corp. of the Philippines for P12.24 billion.

The preferred shares carry a par value of P1 apiece at a subscription price of P60.10 per share, or a total subscription price of P12.24 billion.

The move is in connection with the use of proceeds of the follow-on offering of SGP and is subject upon approval of the application for the increase in authorized capital stock of NGCP with the Securities and Exchange Commission, the company said.

SGP said it would use the proceeds from the follow-on offering to finance NGCP capital expenditure and subscription-related taxes, costs and expenses.

The board and stockholders of NGCP on March 31 approved the increase in authorized capital stock from P2 billion divided into 2 billion common shares with a par value of P1 per share to P2,203,630,000, divided into two classes of shares consisting of 2 billion common shares with a par value of P1 per share; and 203,630,000 non-voting preferred shares with a par value ofP1 per share.

NGCP committed to invest P440 billion across 211 projects which are aimed to support the growing electricity demand in the country and make the country’s power backbone continuously reliable in the next 13 years.

NGCP completed several components of the Mindanao-Visayas Interconnection Project, particularly the submarine cable and cable terminal stations completed in November 2021 and the Lala-Aurora 138-kV transmission line energized in February.

SGP indirectly controls 60 percent of the outstanding capital stock of NGCP, SGP’s sole operating asset, with an effective equity interest of 40.2 percent.