Manila's Sovereign Fund Targets Year-End Close on $340 Million Grid Stake

Delayed Transaction Drags Into Second Year

Energy Secretary Sharon Garin said she remains confident that Maharlika Investment Corp. will close its P19.7 billion ($340 million) acquisition of a stake in National Grid Corp. of the Philippines before the end of 2026, even as the transaction enters its nineteenth month without completion.

The sovereign wealth fund signed a binding offer with Synergy Grid and Development Philippines Inc. in January 2025, initially targeting closure within 180 days. That deadline has long passed, with negotiations between the parties continuing to push back the timeline.

"Although it's not a big percentage, it will still give the government visibility on what's happening inside the NGCP," Garin said, according to the Department of Energy.

The deal would grant Maharlika four board seats split evenly between Synergy Grid and NGCP once finalized. Synergy Grid, a listed entity, controls 60 percent of voting rights in NGCP, while State Grid Corp. of China holds the remaining 40 percent as technical partner.

Government Seeks Greater Voice in Strategic Asset

Manila's push to secure a foothold in NGCP reflects broader concerns about control over critical infrastructure. The grid operator holds a 25-year concession and 50-year franchise to run the state-owned transmission network, a position that gives it outsized influence over power flows across the archipelago's three main grids.

Garin acknowledged that "modifications" have been made to the transaction structure but declined to provide specifics. "There has to be some form of document that they signed as an agreement. And that's what I'm not updated on yet," she said.

Maharlika president and CEO Rafael Consing told reporters earlier this year that the fund was targeting completion in the first half of 2026. That window has now closed, and NGCP officials have not commented publicly on the transaction's status.

The sovereign fund's entry comes as NGCP faces mounting scrutiny over grid reliability. The operator has invested more than P438 billion in transmission infrastructure since taking over the network, according to company disclosures, but congestion and outages remain persistent issues in several regions.

Strategic Implications for Regional Energy Security

The transaction carries weight beyond domestic politics. NGCP's ownership structure, with State Grid holding significant voting power, has drawn attention from regional security analysts who note the strategic importance of transmission infrastructure in Southeast Asia's most fragmented power market.

A government stake, however small, would give Manila a formal voice in boardroom decisions at a time when the Philippines is trying to attract more private capital into power generation and distribution. The country needs an estimated $27 billion in energy infrastructure investment through 2040 to meet demand growth and reliability targets, according to the Department of Energy's latest power development plan.

Maharlika, established in 2023 with an initial capitalization of P125 billion, has been building a portfolio that includes stakes in renewable energy projects, toll roads, and digital infrastructure. The NGCP transaction would mark its largest single investment in the power sector.

The fund's ability to close the deal before year-end will test its capacity to navigate complex negotiations involving multiple stakeholders, including Synergy Grid's controlling shareholders, State Grid, and regulators at the Energy Regulatory Commission. Any change in NGCP's ownership structure requires regulatory approval, adding another layer of uncertainty to the timeline.

Industry watchers are now looking to the fourth quarter to see whether Maharlika can finalize terms and secure the necessary clearances, or if the transaction will slip into 2027.