Manila: The Maharlika Investment Corporation (MIC), the manager of the Philippines' first sovereign wealth fund, is set to invest PHP19.7 billion to acquire a 20-percent stake in the National Grid Corporation of the Philippines (NGCP). This move marks a significant step towards increasing government influence over the country's power grid operations.

According to Philippines News Agency, MIC President and CEO Rafael Consing Jr. announced in a Palace press briefing that the investment funds will be used to purchase preferred shares at PHP15 each from Synergy Grid and Development Philippines Inc. (SGP), a key stakeholder in NGCP. The preferred shares come with a guaranteed dividend yield of over 6.5 percent for the first three years of the investment. Consing mentioned that after the initial three years, the investment could be converted into common shares, offering MIC greater flexibility and control over its stake in NGCP.

MIC aims to finalize and sign transaction documents of its maiden investment within the next 90 days. On Monday, Malaca±ang announced that SGP has accepted a binding offer from MIC to secure a foothold in NGCP. The deal will grant MIC two board seats each in the SGP and NGCP, the country's lone power transmission network.

In a statement, Consing clarified that the NGCP investment will involve '100% primary shares,' meaning all capital invested will go directly to NGCP to support its capital expenditure rollouts. Furthermore, MIC expressed openness to acquiring shares from the State Grid Corporation of China (SGCC), which holds a 40 percent stake in NGCP, though no discussions with the Chinese firm are currently taking place.

Consing hinted at additional MIC investments in the pipeline. While he did not provide specific details, he suggested that another significant deal could be announced within the next 30 days.