San Miguel subscribes to Azure Venture

San Miguel Global Power Holdings Corp. (SMGP) entered into a subscription agreement with Azure Venture Investments Ltd. worth $800 million, according to a report by BusinessMirror.

In a filing, the power arm of conglomerate San Miguel Corp. said it executed an agreement with the offshore private equity fund covering the subscription of redeemable perpetual securities of the power firm amounting to $800 million.

The agreement is still subject to certain closing requirements.

No other details were provided as of press time.  According to the Energy Regulatory Commission (ERC), the power business of SMC was the second most dominant player last year with a market share of 19.78 percent, representing an installed capacity of 5,057 megawatts (MW).

Its market share in Luzon, Visayas, and Mindanao stood at 25.48 percent, 4.12 percent, and 8.12 percent, respectively.

Aside from leading the power generation industry, San Miguel Global Power is also a strong player in the industry of power distribution and battery energy storage in the Philippines. The company continues to venture in innovations and technologies that will change the Philippine energy mix and help the country achieve a carbon-neutral economy.

Last month, SMGP forged a $3.3-billion power deal with Pangilinan-led Meralco PowerGen Corp. (MGen) and Aboitiz Power Corp. to boost energy security in the country.

Under the deal, MGen and AboitizPower will jointly invest in two of SMGP’s gas-fired power plants—the 1,278 MW Ilijan power plant and a new 1,320 MW combined cycle power facility which is expected to start operations by the end of 2024 – and together with SMGP will invest in almost 100 percent of the liquefied natural gas (LNG) import and regasification terminal owned by Linseed Field Power Corp.

Additionally, all three companies will acquire the LNG import and regasification terminal of Linseed Field Power Corp. This will be used to receive, store and process LNG fuel for the two power plants, thus fully integrating the local energy sector into the global natural gas supply chain.