The Energy Regulatory Commission (ERC) has declared that the acquisition by Synergy Grid & Development Phils. (SGP) of 40 percent of the outstanding capital stock of National Grid Corp. of the Philippines satisfied the dispersal of ownership requirement under NGCP’s franchise.
NGCP is mandated to list, subject to the requirements of the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE), and make a public offering of 20 percent of its outstanding capital stock or a higher percentage within 10 years from the commencement of its operations.
Sec. 8 of NGCP’s franchise further states that the listing in the PSE of any company that directly or indirectly owns or controls at least 30 percent of the outstanding shares of stock of NGCP shall be considered fully compliant with this listing requirement.
SGP received the ERC order dated May 26 on June 24.
According to the ERC, SGP is a company listed in the PSE which had met the minimum public ownership requirement when it conducted a follow- on offering (FOO) to disperse at least 20 percent of its capital to the public in November 2021.
SGP’s total subscription of P12.24 billion at P60.10 per non-voting preferred share, came from the company’s successful follow-on offering last year.