September 26, 2024 | 12:00am
MANILA, Philippines — The government is planning to unload its 145.6 million shares in Consunji-led Semirara Mining and Power Corp. (SMPC) in a bid to boost its non-tax revenues through privatization.
On the sidelines of the Management Association of the Philippines general membership meeting on Tuesday, Finance Undersecretary and chief economist Domini Velasquez said the government is aggressively pursuing non-tax revenues through privatization.
Velasquez said that the Department of Finance (DOF) has a long list of assets eyed for privatization over the course of the Marcos administration.
He said one of these assets is the government’s 145.61 million shares in SMPC.
“It’s being studied right now at the DOF. It’s up for privatization already,” Velasquez told reporters.
“Most important is the valuation of the shares and looking for investors, especially right now that the market is moving. It’s a matter of timing,” she said.
The sale of the SMPC share is expected to be part of the P100 billion privatization target of the DOF for 2025.
“It will benefit us if the stock market is doing well,” Velasquez said.
SMPC share prices stayed the same yesterday, closing at P33.85 apiece.
SMPC explores, develops and mines the coal resources in Semirara Island in Antique through a coal operating contract with the Department of Energy.
It integrated its business as a coal supplier or producer to power generation through its wholly owned subsidiaries.
The company generates its revenues through the production and sale of sub-bituminous coal.
Currently, SMPC has existing coal supply contracts with its own power subsidiaries as well as other power plants, cement manufacturers and other small boiler users.
While the SMPC shares are the only mining shares which the government is looking at for now, Velasquez said that these could still change depending on interest, especially on the government’s hard assets.
Apart from SMPC shares, other government assets that are targeted for privatization and disposition next year include the Food Terminal Inc., Financial Center Area, Ecology Villages, Mile Long Complex, National Housing Authority-Caloocan Property, Fil-Eastern Woods Industries Inc., Pioneer Glass Manufacturing Corp., Mindanao Progress Corp. and Central Bank-Board of Liquidators.
Also included are the Office of the Ombudsman properties in Laguna, Baguio and Batangas, Technology Resources Corp., Al-Amanah Islamic Investment Bank of the Philippines, Sta. Clara Lumber Co. Inc. and Peninsula Development Bank.
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