SMC beefing up power unit with P30 billion infusion

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May 24, 2025 | 12:00am

MANILA, Philippines — Diversified conglomerate San Miguel Corp. (SMC) of tycoon Ramon Ang is injecting P30.3 billion in fresh funds into its power arm to support its capital requirements.

In a regulatory filing, San Miguel Global Power Holdings Corp. (SMGP) said its parent SMC subscribed to an additional 1.01 billion shares at a price of P30 apiece.

The shares were issued from the increase in SMGP’s authorized capital stock, with SMC receiving the stock certificate covering the shares involved in the transaction last Tuesday.

This came after the Securities and Exchange Commission approved SMGP’s capital hike to P7.8 billion from P3.77 billion, effectively granting it the ability to issue additional shares.

SMGP’s board of directors approved the move in March, while its stockholders subsequently ratified it last month.

As the power subsidiary of SMC, SMGP is gearing up for the construction of several energy projects across the country to further bulk up its portfolio.

In separate filings to the Department of Environment and Natural Resources, the company proposed the development of two massive pumped storage hydropower projects in Pangasinan and Benguet.

With a total potential installed capacity of 1,600 megawatts, the two facilities would require close to P89 billion in financing.

Similarly, SMGP has also set aside at least P87 billion to develop thermal and gas projects across Bataan, Zambales and Batangas.

Last December, the company raised $500 million from the issuance of senior perpetual capital securities, proceeds of which were used to bankroll its expansion.

SMGP has emerged as the country’s biggest power producer with a capacity of about 6.08 million kilowatts, equivalent to a national market share of 22.44 percent.