SEC approves JG Summit’s new infrastructure unit

THE Gokongwei group has established a new company that would handle its investments in infrastructure.

In a disclosure to the stock exchange, JG Summit Holdings, Inc. said the Securities and Exchange Commission has approved the incorporation of JG Summit Infrastructure Holdings Corp.

The new corporate vehicle signifies the company’s intent to be take part in the government’s intensive infrastructure campaign, which looks to spend P8 trillion during President Rodrigo R. Duterte’s term for the construction of railways, expressways, bridges, and improvement of airports.

The company was not immediately available for comment when asked about the steps moving forward for the infrastructure unit.

Earlier this year, JG Summit, along with the Filinvest Group, submitted a P186.64-billion unsolicited proposal for the development and expansion of the Clark International Airport. However, the proposal was rejected by the Department of Transportation, which will undertake the modernization of the airport.

JG Summit’s interests also include air transportation through Cebu Pacific; real estate through Robinsons Land Corp.; banking through Robinsons Bank Corp.; food and beverage through Universal Robina Corp.; and petrochemicals through JG Summit Petrochemical Corp.

JG Summit further holds interests in power generation through Global Business Power Corp., where it has a 30% stake, as well as Manila Electric Co. with a share of 27.1%. The listed firm also has an 8% stake telecommunications firm PLDT, Inc.

The Gokongwei family’s holding company had a market capitalization of P526.62 billion, as of Sept. 5.

JG Summit’s first half attributable profit stood at P14.64 billion, 16.48% lower than the P17.53 billion recorded in the first half of 2016.

Shares in JG Summit ended flat at the stock exchange to P73.8 apiece on Tuesday. — Arra B. Francia