by: Noelle Azarcon / April 19, 2022
![Philippine Geothermal Production Company, Inc. (PGPC) operates the Tiwi steam field, the first commercial-scale geothermal steam field development in Southeast Asia.](http://ayopost.org/wp-content/uploads/2023/08/GEOTHERMALFACILITIES_BANNERPHOTO2.jpg)
MANILA, Philippines — In an effort to promote sustainability and renewable energy, SM Investments Corp. (SMIC), announced its 81% acquisition of Allfirst Holdings Inc., the holding company for the Philippine Geothermal Production Company, Inc. (PGPC), in a PHP 15.73 billion deal (USD 304 million) in exchange for shares in SMIC.
The transaction is said to be completed by the third quarter of 2022 and will be conducted in a share-swap deal. In doing so, SMIC will issue PHP 17.4 million shares to PGPC at PHP 903.88 apiece, based on the PHP 26.6 billion valuation of the renewable energy company in accordance with the cash flow of its existing geothermal steam fields.
Furthermore, the deal will result in SMIC’s 100% ownership of PGPC which will be included in the corporation’s portfolio investments. Operating since 1979, the Tiwi and Mak-Ban steam fields located in the provinces of Bicol and Laguna, respectively, generate 300 megawatts of electricity. PGPC also owns other concession areas that will be developed for geothermal steam production in the foreseeable future.
In a press release, SMIC President and CEO Frederic C. DyBuncio expressed delight in the deal, stating that, “As a leading sustainability advocate, SMIC is pleased to invest directly in clean renewable energy-related production, which is a national priority and aligned with our commitments to environmental stewardship and to tackling climate change. Renewable geothermal energy production contributes to