The Government Service Insurance System (GSIS) may buy the Department of Finance’s (DOF) stake in Semirara Mining and Power Corporation (SMPC).
In a report by Philippine Star, this statement came after the DOF announced its plans to sell 145.6 million company shares, aiming to boost non-tax revenues through privatization.
The shares, held by the Privatization and Management Office, represent a 3.4% stake in SMPC. Consunji noted that this stake has always been part of the company’s public float, which currently stands at 24.23%.
In a notable aspect of the sale, current shareholders of SMPC will not have the right of first refusal regarding the government’s stake. According to SMPC VP and CFO Carla Cristina Levina, the company’s articles of incorporation (AOI) do not grant present shareholders a prior right to share sale.
Levina elaborated that the DOF’s decision to sell shares falls under shareholder discretion, meaning the timeline and method of disposal depend on the DOF as the shareholder.
Finance Undersecretary Domini Velasquez said that while the decision is time-sensitive, the privatization of SMPC shares is anticipated to progress within 2025, emphasizing the importance of share valuation and attracting potential investors, especially in a favorable market.
SMPC, a subsidiary of DMCI Holdings Inc., is the largest coal producer in the Philippines and uniquely positioned as the only local power generation firm that owns and mines its own fuel source.
The company operates four power plants with a total capacity of 900 MW, including a 2×300-MW coal plant under Sem-Calaca Power Corporation and a 2×150-MW power plant under Southwest Luzon Power Generation Corporation.
