National Grid mulls public offer to pay debt

MANILA, Philippines - The owners of the National Grid Corp. of the Philippines (NGCP), the operator of the country’s electricity superhighway, are planning to take the company public, according to sources.

Sources privy to the plan said the NGCP consortium consisting of Henry Sy Jr.’s OneTaipan Holdings Inc., Calaca High Power Corp. of the Coyiuto Group and China’s State Grid Industry Development Ltd. are mulling the possibility of raising funds through an initial public offering (IPO) of shares next year to pay down debt.

A source, who requested not to be named, said a minimum 20 percent of the company’s stock could be issued to the public through an IPO. “We’re planning to float the shares to the public by next year. A lot of people have expressed interest to invest in the company but we’d rather do a public offering than a private placement of shares,” the source said.

Last week, NGCP announced the appointment of Sy Jr., the eldest son of shopping mall magnate Henry Sy Sr. and currently the vice-chairman and chief executive of SM Development Corp., as the transmission company’s new president and chief executive.

Sy said he will work closely with his partners to ensure that the company delivers on its commitment to provide transmission reliability and efficiency, anchored on continually improving its facilities and keeping the NGCP workforce highly motivated.

OneTaipan Holdings earlier bought out for $350 million the 30-percent stake of the Razon led Monte Oro Grid Resources in NGCP last March.

Calaca High Power and State Grid retained their holdings of 30 percent and 40 percent, respectively.

NGCP is now preparing a long-term masterplan to develop a contiguous national grid that will connect all the major islands in the country with the assistance of the State Grid of China as its foreign financial and technical partner.

Sy said NGCP’s ability to provide a reliable and cost-effective transmission facility and services will “directly redound to the benefit of various industries and the Filipino masses.”