The Maharlika Investment Corporation (MIC) has acquired a 20% stake in Synergy Grid & Development Phils., Inc. (SGP) for PHP 52.5 billion, giving the government direct influence over the country’s power transmission network.
MIC’s investment is in SGP, which holds a controlling 60% stake in the National Grid Corporation of the Philippines (NGCP). NGCP operates the country’s power transmission system under a 25-year concession agreement and is responsible for delivering electricity from power plants to distribution utilities.
NGCP is 60% owned by SGP, while the remaining 40% is held by the State Grid Corporation of China (SGCC), a state-owned enterprise under the Chinese government. Its involvement in the NGCP has raised security concerns in the Philippines due to geopolitical tensions and the strategic importance of energy infrastructure.
Lawmakers and energy officials have flagged the risks of foreign influence over critical infrastructure, calling for increased local control. MIC’s investment is seen as a move to balance foreign influence and reinforce national energy security.
SGP’s major shareholders are Henry Sy Jr. (44.5%) and Robert Coyiuto Jr. (34%), while the remaining 21.5% are owned by other investors.
Sy Jr. is the vice chairman of SM Investments Corporation, while Coyiuto Jr. is the chairman of Prudential Guarantee and Assurance, Inc.
With this investment, MIC secures two board seats in both SGP and the NGCP. This means the government will now have a say in key decisions related to power transmission projects, grid expansion, and national energy security measures.
MIC was established as the Philippines’ sovereign wealth fund to invest in strategic industries. The fund currently has PHP 125 billion in initial capital, sourced from the Bangko Sentral ng Pilipinas (BSP), Land Bank of the Philippines (LBP), and the Development Bank of the Philippines (DBP). Its first investment was the SGP stake, signaling its focus on infrastructure and public utilities.
With MIC now holding a direct stake in NGCP, the government has strengthened its influence over the country’s energy sector for the first time since privatization in 2009.
Officials have not ruled out acquiring additional shares, including SGCC’s 40% stake if it becomes available.
