(28 April 2022. Pasay City, Philippines) – Shareholders of SM Investments Corporation (SM Investments) approved the company’s acquisition of Philippine Geothermal Production Company (PGPC), in line with SM’s strong commitment to sustainability and in promoting renewable energy in the Philippines.
Shareholders approved the merger of SM Investments with Allfirst Equity Holdings, the holding company for PGPC. The consideration to be paid for PGPC has been deemed fair by the independent appraiser.
PGPC operates the Tiwi and Mak-Ban steam fields. Tiwi is the first commercial-scale geothermal steam field development in Southeast Asia, followed by Mak-Ban, both in operation since 1979. Together they generate geothermal steam sufficient to produce approximately 300 MW of electricity.
In addition to its two producing steam fields, PGPC also has several other greenfield concession areas for geothermal steam production which it will develop moving forward.
“Our acquisition into PGPC reflects our commitment to sustainability, our strong support to promote clean energy and is aligned with our goals of environmental stewardship as a responsible company. This acquisition will further enhance our sustainability portfolio,” said Frederic C. DyBuncio, SM President and Chief Executive Officer.
“This investment fits our portfolio investment criteria. Renewable energy is a growing sector in which PGPC has the potential to be a leading player, has good synergies with the SM group, operates on high standards of good governance and has a track record of responsible management,” Mr. DyBuncio added.
In his report to shareholders, Mr. DyBuncio remarked that 2021 saw SM stepping up its response to climate change.
“As a country that is one of the smallest contributors to global climate change, the Philippines happens to be one of the most vulnerable to its harsh effects,” Mr. DyBuncio said.
SM, its property arm, SM Prime Holdings, Inc. and NEO, one of its portfolio companies signed on as supporters of the Task Force on Climate Related Financial Disclosures (TCFD), an international framework on climate change-related environmental reporting, making clear each company’s strong support for private sector action and transparency in its own programs.
SM also continued to evaluate its energy use across the group and identify ways to be more efficient and where it can lead as an advocate.
SM Prime made one of the boldest announcements related to energy usage in the country to date, committing that 50 percent of its energy will be provided by renewable sources by end-2022.
NEO for its part became the first building development portfolio in the world to be certified as net zero carbon under the EDGE program of the International Finance Corporation.
Its banking arm BDO, also continues to lead in financing renewable energy projects nationwide, funding 54 renewable energy projects in 2021.
“Going forward into the future, we recognize that protecting our environment will be one of the biggest challenges we will continue to face. We remain committed to advancing the principles of the UN Global Compact and to contributing material actions towards the UN Sustainable Development Goals,” Mr. DyBuncio said in his report.
For information, please visit www.sminvestments.com
About SM Investments Corporation
SM Investments Corporation is a leading Philippine company that is invested in market-leading businesses in retail, banking, and property. It also invests in ventures that capture high growth opportunities in the emerging Philippine economy.
SM’s retail operations are the country’s largest and most diversified with its food, non-food, and specialty retail stores. SM’s property arm, SM Prime Holdings, Inc., is the largest integrated property developer in the Philippines with interests in malls, residences, offices, hotels and convention centers as well as tourism-related property developments. SM’s interests in banking are in BDO Unibank, Inc., the country’s largest bank, and China Banking Corporation, the 6th largest bank.
Consultant, Investor Relations & Sustainability
SM Investments Corporation