San Miguel Corp. (SMC) is making an equity investment of P3 billion in Petrogen Insurance Corp., a wholly-owned insurance company of Petron Corp., it said in a disclosure to the Philippine Stock Exchange (PSE).
The firm’s board of directors approved the investment in a meeting on Thursday, SMC said in the regulatory filing.
“With the investment, the corporation will have a direct equity interest in Petrogen Insurance Corporation in addition to its current indirect equity interest through Petron,” the company said in a statement.
SMC added that the infusion would allow it to expand its insurance business in the country.
Petrogen Insurance, a unit of Petron, provides insurance and reinsurance, except life insurance, for sea and land; for properties, goods and merchandise; for transportation or conveyance; and against fire, earthquake, marine perils, and accidents.
Shares of its parent firm Petron inched up by 1% to close at P4.01 apiece on Thursday.
Meanwhile, SMC stocks went up by 1.5% to finish at P134.90 per share. — Angelica Y. Yang
