SM Investments Corporation, the flagship of the Sy family, remains on the lookout for high growth potential companies in the Philippines to beef up its investment portfolio.
“We continue to be cognizant of companies in the Philippines that have the potential for high growth in the country,” said SMIC President Frederic Dybuncio during the firm’s annual stockholders’ meeting.
However, he noted that SMIC’s acquisition of Philippines Geothermal Production Company Inc. is just a one-off transaction and does not mean that the conglomerate is aiming to be a major player in the power generation industry.
“The acquisition... reflects our commitment to sustainability and strong support to promote clean energy. This acquisition will further enhance our sustainability portfolio and exposure,” explained Dybuncio.
He noted that, “We've always invested to expand even in challenging years, knowing the long term opportunities that the Philippines holds. We also know that we can fulfill the growing needs of millions to underserved Filipinos with a modern retail, integrated property development, financial access, or other emerging services.”
Dybuncio cited SMIC’s decision to increase ownership in its portfolio companies.
“Among them is a heritage bake shop chain Goldilocks, and 2GO, the leading logistics company in the country. we believe these companies have strong assets, strong growth potential, and synergize well with our other businesses,” he said.
Dybuncio pointed out that this group of businesses now accounts for 7 percent of SMIC’s consolidated earnings, and they are looking to grow the portfolio with the addition of Philippine Geothermal Production Company.
Once SMIC shareholders approve the acquisition, the new business will add significant and sustainable geothermal steam energy related assets to SMIC’s portfolio.