SMC to subscribe to power unit’s notes issue

By Jordeene Sheex Lagare – March 16, 2018
from The Manila Times

CONGLOMERATE San Miguel Corp. (SMC) said it would subscribe to redeemable securities worth $650 million (P33.85 billion) to partly finance the acquisition of the 630-megawatt (MW) Masinloc coal power plant by its unit, SMC Global Power Holdings Corp.

In a disclosure, San Miguel said its board of directors approved on Thursday the subscription by the company to redeemable perpetual securities to be issued by SMC Global Power.

Proceeds of the issue will be used “to partially finance the acquisition of the Masinloc power assets,” it said.

The announcement comes after the anti-trust regulator Philippine Competition Commission (PCC) gave SMC Global Power the green light to acquire the Masinloc plant in Zambales in a $1.9-billion deal.

The purchase — to be effected via SMC Global Power’s acquisition of shares in Masin-AES, AES Transpower and AES Philippines — would “not result in substantial lessening of competition in the power generation and retail electricity markets,” the PCC said in February.