THE Department of Energy (DoE) was asked to explain in the Senate the delay in closing the deal signed by the Maharlika Investment Corp. (MIC) to take a stake in the National Grid Corp. of the Philippines (NGCP).
At a Senate budget hearing on Thursday, Energy Committee Vice Chairman Sherwin T. Gatchalian said he was surprised to learn that MIC has not yet concluded the P19.7-billion deal for a stake in the grid operator.
Citing recent conversations with MIC, Energy Secretary Sharon S. Garin said the contract has yet to be executed.
“As concessionaire, (NGCP) should inform TransCo (the National Transmission Corp.) of any changes,” she said, adding that the DoE will send an official query to the MIC.
Asked to comment, MIC President and Chief Executive Officer Rafael D. Consing, Jr. said the company is committed to issue a disclosure once the transaction closes, noting that the company it purchased 20% of, the holding company Synergy Grid & Development Phils. (SGP), is publicly listed and bound by strict disclosure rules.
“Commenting on a potential transaction before it is finalized would violate these regulations,” he told BusinessWorld.
Earlier this year, MIC signed a binding agreement to acquire a 20% stake in SGP for about P15 per preferred share.
SGP controls 60% of the voting rights in NGCP, with the remainder held by State Grid of China Corp.
After the transaction closes, MIC will get two board seats in SGP as well as in NGCP.
At the holding company’s annual shareholder meeting last week, Rubort Coyiuto, Jr. stepped down as vice chair and director.
NGCP in 2007 was granted a 25-year concession to operate the Philippine transmission system. It began operations in 2009. — Sheldeen Joy Talavera