ERC scrutiny adds a new wrinkle to Ramon Ang’s Lopez Inc. investment

San Miguel Corp. chief Ramon Ang; Energy Regulatory Commission chair Saturnino Juan David Castuciano/Rappler Energy Regulatory Commission Chair Francis Saturnino Juan says the regulator is looking into issues involving generation market-share limits and cross-ownership restrictions Ramon S. Ang acquired a 25.68% stake in Lopez Inc., prompting the Energy Regulatory Commission (ERC) to investigate potential competition implications in the power sector. The ERC is examining whether Ang's investment through Illumina Investment Holdings Inc. raises issues related to market-share limits and cross-ownership restrictions due to connections with San Miguel Global Power and First Gen. The inquiry focuses on the governance terms of Ang's investment, including potential board representation and influence over major decisions, which could impact the competitive landscape of the Philippine power industry. This is AI-generated. Read the article for full context. Report any errors. MANILA, Philippines – Ramon S. Ang’s acquisition of a 25.68% stake in Lopez Inc. has moved beyond a family ownership story and into the regulatory arena, with the Energy Regulatory Commission (ERC) now examining whether his entry into the Lopez holding company could have implications for competition in the power sector. ERC Chair Francis Saturnino Juan said the regulator is looking into whether Ang’s investment, made personally through Illumina Investment Holdings Inc., could raise issues involving generation market-share limits and cross-ownership restrictions because of the relationship between San Miguel Global Power and Lopez-controlled First Gen. The distinction is important. Ang did not buy the Lopez Inc. stake through San Miguel Corp., and his 25.68% holding does not by itself establish control. But under the Electric Power Industry Reform Act (EPIRA), regulators are not limited to counting shares. They may also consider whether ownership, contractual arrangements, management rights or other forms of influence effectively place companies within a related group. That makes the still-undisclosed governance terms of Ang’s Lopez Inc. investment increasingly important. Juan said the ERC still needs to determine whether Ang obtained an officer position or other governance role within the Lopez group. The regulator’s inquiry therefore puts a spotlight on questions that the transaction disclosures have so far left unanswered: Does Illumina have board representation, veto rights, special voting arrangements or contractual influence over major decisions? The ERC has made no finding of wrongdoing and has not said the transaction violates EPIRA. Nor is there any new formal disclosure confirming earlier reports of a broader 71% sale of Lopez Inc. for about ₱45 billion. Still, the regulatory interest changes the complexion of the deal. What began as a surprising minority investment by one of the country’s most powerful businessmen in one of its oldest family conglomerates now carries a second question beyond who owns Lopez Inc.: how much influence did Ang actually buy? That answer could matter not only to the Lopez family, but also to the competitive structure of the Philippine power industry. – Rappler.com How does this make you feel? Loading