Philippines Wealth Fund Acquires 20% Stake in China-Backed Grid Operator

The Philippines' sovereign wealth fund, Maharlika Investment Corp., will acquire a 20% stake in Synergy Grid & Development Phils. Inc. for approximately 19.7 billion pesos ($337 million). This investment marks Maharlika's inaugural venture and is seen as a strategic move to enhance government influence over the critical power infrastructure, particularly in light of concerns regarding foreign ownership by China's State Grid Corp., which holds a 40% stake in the National Grid Corporation of the Philippines (NGCP). The deal, witnessed by President Ferdinand Marcos Jr., aims to improve transparency and ensure energy security for the nation. Additionally, Maharlika has expressed interest in acquiring shares from the State Grid if they become available. The investment is expected to yield a 6% dividend over the first three years, increasing to 8% upon conversion to common shares. This development underscores the Philippines' efforts to regain control over its energy resources amidst rising scrutiny of foreign influence.