IGNITE POWER CHIEF: SOCOTECO II PROPOSAL IS PARTNERSHIP, NOT TAKEOVER

GENERAL SANTOS CITY — Ignite Power clarified that its proposal involving South Cotabato II Electric Cooperative (SOCOTECO II) is not a takeover, but a joint venture partnership aimed at improving power service in the region.

During a presentation before the Sangguniang Panlungsod, Ignite Power CEO and President Roel Z. Castro assured local officials that SOCOTECO II will remain a separate legal entity.

“The proposal that we are putting forward is not to take over,” Castro emphasized.

“It will remain as a juridical entity as it is.”

JOINT VENTURE, NOT OWNERSHIP CHANGE

Under the proposed setup, a new company—Mindanao Electric and Power Corporation (Mindanao Power)—will be created to handle power distribution operations.

70% ownership – Ignite Power 30% ownership – SOCOTECO II

Castro said the structure follows similar models already implemented in other areas.

FOCUS ON SYSTEM UPGRADE & RELIABILITY

The partnership will focus on modernizing and operating the distribution system, covering:

Substations Distribution and sub-transmission lines Transformers and electric posts Meters and related infrastructure

The aim is to improve reliability, reduce outages, and enhance service delivery.

ASSETS & PAYMENT STRUCTURE

Ignite Power proposed the following arrangement:

70% of asset value – paid in cash 30% – converted into equity shares

This makes SOCOTECO II a 30% stakeholder in the new entity.

Certain assets—such as cash, receivables, and selected properties—may remain with SOCOTECO II.

STILL UNDER REVIEW

The proposal is currently under review by the SOCOTECO II Board of Directors, as stakeholders assess its impact on:

Power reliability Operational efficiency Consumer experience

BOTTOM LINE

Ignite Power maintains that the proposal is a partnership—not a takeover, aimed at strengthening power distribution services in General Santos City and surrounding areas.

Ignite Power is a joint venture between Primelectric Holdings of Enrique Razon Jr. and MP Holdings of Manny Pacquiao. The company is expanding its footprint in power distribution, with projects in Iloilo, Negros, and Bohol, focusing on modernizing infrastructure, reducing system losses, and improving service reliability—capabilities it aims to bring to SOCOTECO II’s franchise area.