NGCP plans backdoor listing via Synergy Grid

By Jenniffer B. Austria – November 21, 2019 at 09:15 pm

Listed Synergy Grid & Development Philippines Inc. is entering into a share swap with businessmen Henry Sy Jr. and Robert Coyiuto, Jr., the major shareholders of National Grid of the Corporation of the Philippines, which could pave the way for the backdoor listing of the national grid operator.

Sy and Coyiuto are also majority shareholders of Synergy Grid.

An information statement filed with the Philippine Stock Exchange showed that Synergy Grid would increase its authorized capital stock to P5.05 billion divided into 5.05 billion common shares to be able to swap for a 67-percent stake in One Taipan, which is owned by Sy and Pacifica21 of Coyiuto.

One Taipan owns controlling shares in Monte Oro Grid Resources Corp., which holds 30 percent plus one share in NGCP, while Pacifica21 has controlling shares in Calaca High Power Corp., which in turn owns 30 percent minus one share in NGCP.

The State Grid Corp. of China holds the remaining 40 percent of NGCP.

“The share swap will be undertaken to formally consolidate Mr. Sy’s and Mr. Coyiuto’s ownership and control of NGCP through a common corporate structure,” Synergy Grid said.

Aside from implementing the share swap agreement, the increase in the company’s capital stock will also enable the Synergy Grid to raise additional capital either though private placement, public offering of shares or a combination of both to fund projects and investments.

While the company has not made specific plans on planned capital raising program, Synergy Grid said it “intends to make a public offering of its shares as soon as possible after the completion of the share swap to meet the minimum public ownership requirement under the SEC and PSE rules”.

Under the share swap agreement, 2.05 billion common shares of Synergy Grid will be swapped with 86.430 million shares of One Taipan. About 2.05 billion common SGDP common shares will be swapped with 871 million common shares of Pacifica21.

NGCP was required to become a public company by January 2019 or 10 year after assuming operations of the Philippine electricity grid from National Transmission Corp. when it won a 25-year license which can be renewed for another 25 years.

The grid operator early this year asked for a deferment for its planned IPO. In 2011, NGCP explored the possibility of going public through backdoor listing via Synergy Grid also via a share swap deal.

The plan was later dropped, Lawmakers threatened to withdraw the franchise of NGCP for its failure to conduct an IPO.