MAHARLIKA Investment Corp. (MIC) said it holds about P71 billion in deployable capital for future investments, including potential stakes in companies preparing to go public.
“We have about P71 billion available for deployment still,” MIC Vice-President for Investments Kheed Ng told BusinessWorld via Viber on Dec. 8.
The sovereign wealth fund is set to receive another P50 billion from the government in the next few months, he said.
State-run Land Bank of the Philippines and Development Bank of the Philippines invested a combined P75 billion in Maharlika earlier this year.
Mr. Ng also said the MIC has reviewed opportunities in water and healthcare for initial public offering (IPO) investments, but added, “due diligence will take more time.”
“We looked at a few. One was in the healthcare space, one was in the water space. But again, it was a bit too late for us in the process to enter because even if we’re brought in early on in the IPO process, there needs to be an alignment with management,” he said separately by phone.
Mr. Ng did not disclose how much Maharlika has earmarked for IPO investments.
“I would say that IPOs for us are more ad hoc. Our business is really private equity. So if we’re going to look at a public company, as I mentioned before, it’s really important that there’s a strategic angle for us to be there,” he said.
MIC remains focused on energy, agriculture, mining, infrastructure, social infrastructure, and climate investments, he said.
In January, the MIC signed a deal to acquire a 20% stake in Synergy Grid & Development Phils., Inc. for P19.7 billion, or about P15 per preferred share, giving it a “foothold” in National Grid Corp. of the Philippines, the country’s sole grid operator.
Regarding investing in public companies, he said some of the options include “to provide primary capital to fund future projects or (if) a big shareholder wants to sell,” he said.
“There needs to be some sort of alignment in the sense of governance and the level of detail of our typical due diligence process, which includes the full suite of financial, reputational, economic and legal due diligence,” Mr. Ng added.
One of MIC’s latest initiatives is a partnership with the National Electrification Administration, the provincial government of Palawan, and Palawan Electric Cooperative, Inc. to help improve the province’s power distribution network.
Last year, the MIC posted earnings of P2.682 billion, up from P154.3 million a year earlier. — Aubrey Rose A. Inosante