SM INVESTMENTS Corp. (SMIC) has acquired full ownership of Philippine Geothermal Production Co., Inc. (PGPC), the operator of Tiwi and Mak-Ban steam fields, through a P15.76-billion share-swap deal with Allfirst Equity Holdings, Inc.

“The acquisition of PGPC is sizeable, accretive to our shareholders, and a strong strategic fit with our portfolio of investments in high growth sectors in the Philippines,” said Frederic C. Dybuncio, president and chief executive officer of SMIC in a stock exchange disclosure on Tuesday.

He added that the deal further reinforces the SM group’s commitment “to sustainability, good governance and acting as a catalyst for responsible development in the communities we serve.”

In the disclosure, SMIC said that it received on Aug. 1 the approval from the Securities and Exchange Commission to acquire the 81% stake of related parties in Allfirst, the holding company for PGPC, in exchange for shares in SMIC.

SMIC said that the deal will bring the company’s ownership in PGCP to 100%. The transaction also involves the issuance of 17.44 million new shares to the sellers or 1.4% of shares outstanding in SMIC.

The steam fields in Tiwi, Albay and Mak-Ban (Makiling-Banahaw) in Laguna and Batangas generate combined geothermal steam enough to produce 300 megawatts of electricity.

Aside from the two steam fields, PGCP also has several greenfield concession areas for geothermal steam production which it plans to develop in the future.

Tiwi is the first commercial-scale geothermal steam field development in Southeast Asia, followed by Mak-Ban. Both are in operation since 1979.

“In 2021, PGPC delivered $99.4 million in revenues and $48.8 million in net income, equivalent to 1.2% of SMIC 2021 revenues and 5.5% accretion to SMIC 2021 net income respectively,” SMIC said.

On Tuesday, shares in SMIC slipped by 1.41% or P11 to close at P769 each. — Ashley Erika O. Jose