Maharlika’s Long-Delayed NGCP Investment Poised For Possible 2026 Close
- August 20, 2026
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The Department of Energy (DOE) expects Maharlika Investment Corp. (MIC) to complete its planned ₱19.7-billion investment in the country’s power transmission sector before the end of the year, although the transaction remains unfinished more than a year after it was first pursued.
Energy Secretary Sharon Garin said negotiations between MIC and Synergy Grid & Development Philippines Inc. (SGP), the controlling shareholder of National Grid Corp. of the Philippines (NGCP), have shown some movement. However, she said the DOE has yet to receive a firm update on whether the parties have signed the documents needed to close the deal.
“A few months more… So it can be done. We’re really supportive of that,” Garin told reporters last week, adding that even a minority stake would give the government greater visibility into NGCP’s operations.
The proposed transaction would give MIC a 20% stake in SGP, an investment vehicle whose sole operating asset is NGCP. The deal would also secure two board seats for MIC in SGP and two more in NGCP, allowing the state-backed investment firm to gain oversight without taking control of the privately operated grid.
Unfinished Deal
MIC initially targeted completion of the investment within 90 to 180 days, but the transaction has stretched for roughly a year and a half since the sovereign wealth fund manager signed a binding agreement to acquire the stake.
The deal involves MIC purchasing SGP preferred shares at about ₱15 apiece. While the investment is valued at ₱19.7 billion, the transaction has yet to reach financial close.
“I need to check on what is the progress. I know that there have been improvements since six months ago,” Garin said, adding that there may have been conversations and modifications to the terms.
Still, the DOE chief said a signed document would be necessary before the transaction could formally proceed to completion.
MIC President and Chief Executive Officer Rafael Jose D. Consing Jr. said that there was no progress on the transaction that MIC could disclose at present.
SGP, meanwhile, said previously that negotiations were continuing to ensure that the proposed investment complied with regulatory requirements. The listed company said the scale and strategic nature of the transaction required extensive due diligence and coordination among the parties.
Greater Grid Visibility
The investment is not intended to give MIC control over NGCP, which operates the Philippines’ electricity transmission system.
Consing had said the government’s objective was to gain some level of influence through the board seats rather than participate in NGCP’s day-to-day management. The investment would also allow MIC access to NGCP’s financial statements.
SGP currently holds 60% of the voting rights in NGCP, while State Grid Corp. of China holds the remaining 40%.
NGCP has operated the national transmission grid since 2009 after securing a 25-year concession in 2007. It also holds a 50-year franchise covering the management and maintenance of the country’s transmission network and related facilities.
For the DOE, the government presence through MIC would provide additional visibility into an infrastructure system critical to electricity reliability and national energy security.
Garin said the government remains supportive of the investment despite the relatively small stake.
Separate Energy Security Role
MIC is also being tapped for another strategic energy initiative as the government considers establishing a strategic petroleum reserve (SPR).
The Philippines, a net importer of energy, has faced increased exposure to global oil supply and price disruptions linked to geopolitical tensions and the prolonged conflict in the Middle East.
The government announced plans for an SPR in June as part of efforts to strengthen the country’s energy security.
The DOE is working with MIC and state-run Philippine National Oil Co. to assess possible structures for the reserve. Under the proposed arrangement, MIC would examine financing mechanisms and potential investment options for the project.
For now, however, the sovereign wealth fund manager’s entry into the power transmission sector remains subject to the completion of negotiations and the signing of the required transaction documents.
The DOE hopes those remaining steps can be completed within the next few months, allowing the long-delayed investment to close before the year ends.
Source:
https://business.inquirer.net/606193/doe-chief-hopeful-on-maharlika-ngcp-deal-completion
