SM Investment of the Billionaire C family in the Philippines takes over Geothermal Company

SM Investment Corporation (SMIC) – controlled by the family of the late retail tycoon Henry Sai – says it will take full ownership of the Philippine Geothermal Production Co. in a 15.7 billion peso ($ 304 million) all-share deal with its market capitalization as the largest company in the country. Wants to reduce footprints.

Under the agreement, SMIC will issue 17.4 million shares at 903.88 pesos to Phulpine Geothermal’s controlling shareholder, Alfurst Equity Holdings, in exchange for an 81% stake in the renewable energy company. SMIC currently owns 19% of the Philippine Geothermal, which produces 300 MW of electricity from the Tiwi and Mak-Ban geothermal steam fields in the province of Bicol, about 480 km south of the Philippine capital Manila.

“As a leading sustainability advocate, SMIC is pleased to invest directly in clean renewable energy-related production, which is a national priority and linked to our commitment to environmental stewardship and climate change,” said Frederick C., SMIC President and CEO. Dibunsio said in a statement late Friday.

DyBuncio said the acquisition would create a significant carbon offset for SMIC – its partner SM Prime Holdings – the country’s largest integrated developer of shopping malls, residential properties, hotels, convention centers and tourism-related projects. Last year, SMIC, SM Prime and Office Unit NEO pledged to support the Task Force on Climate-Related Financial Disclosure,

SMIC said it expects to complete the transaction by the third quarter of this year, subject to shareholder and regulator approval. The acquisition will be an income tax for the group, which has seen a strong recovery across its business as well as easing Philippine Covid-19 epidemic restrictions.

The company’s net profit rose 65% to 38.5 billion pesos in 2021, bolstered by contributions from its banking, residential property development projects and shopping malls.

The SM business was started in 1958 by Henry Sy as a shoe store called ShoeMart in Manila. It has since become the owner of BDO Unibank, the largest shopping mall operator in the Philippines and the country’s largest bank. SM Investments is run by Sy’s eldest son, Teresita C.-Cosson, who, along with her five siblings, owns সমন্ব 16.6 billion in combined assets, making the family the richest in the country.

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