State-run pension fund Government Service Insurance System invested P1.46 billion in Nickel Asia Corp., a company established by businessman Manuel Zamora Jr.
GSIS purchased 233.588 million shares in NAC through a special block sale at P6.28 apiece, the mining firm said in a stock exchange filing Thursday.
The acquisition price represents a 4-percent discount to the stock’s closing price of P6.50 on Wednesday.
“GSIS’ investment in NAC shows that it is possible for a company to grow responsibly. Our commitment to sustainable development is something we take seriously, and we are happy to attract like-minded entities that believe in the value of responsible mining and renewable energy,” NAC president and chief executive Martin Antonio Zamora said.
GSIS president and general manager Wick Veloso said the acquisition was in line with the fund’s effort lengthen its fund life.
“GSIS continues to look for ways to lengthen its fund life through viable investment opportunities such as the successful vertically-integrated mining ore production and processing businesses of NAC,” Veloso said.
“Our decision to invest in NAC supports the goal of safely growing our funds for our members’ benefit, while positioning strategically to aid both the Electric Vehicle industry and nation-building,” he said.
NAC aims to achieve its twin goal of becoming a premier ESG investment in the country and becoming one of the top 25 companies in the Philippine Stock Exchange in terms of market capitalization by 2025.
NAC booked an attributable net income of P7.93 billion in 2022, up by 1.5 percent from P7.81 billion it reported in 2021 as higher nickel ore prices and favorable exchange rates offset lower sales volume.
NAC is the country’s largest producer of lateritic nickel ore. It has five operating mines—Cagdianao, Dinapigue, Hinatuan, Rio Tuba and Taganito.
NAC in February bagged the right to be the exclusive mining service contractor for two properties in Davao Oriental owned by Hallmark Mining Corp. and Austral-Asia Link Mining Corp.