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GSIS invests PHP 1.46 billion in Nickel Asia

April 13, 2023By BusinessWorld

THE Government Service Insurance System (GSIS) on Thursday said it had invested PHP 1.46 billion in listed mining company Nickel Asia Corp. (NAC).

“GSIS continues to look for ways to lengthen its fund life through viable investment opportunities such as successful vertically integrated mining ore production and processing business of NAC,” GSIS President and General Manager Jose Arnulfo “Wick” A. Veloso said in a statement.

The investment sought to increase funds for the “member’s benefit” and to back the electronic vehicle industry which is the key market of the mining sector.

The partnership was sealed through a block sale approved by the Philippine Stock Exchange (PSE) on Wednesday, involving the purchase of a total of 233,558,683 common shares.

“GSIS’s investment in NAC shows that it is possible for a company to grow responsibly,” said NAC Chief Executive Officer and President Martin Antonio G. Zamora in a statement.

“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,” he added.

According to the company’s financial report, it recorded a 1.5% rise in its attributable net income to reach PHP 7.93 billion in the previous year.

Revenues climbed 2.2% to PHP 28 billion in 2022 from PHP 27.4 billion in the previous year.

“Maybe GSIS viewed the NIKL acquisition to be at a discount to market since it’s been traversing within a range that’s especially close to previous lows,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The vertical integration of mining ore production and processing business” seemed to be the selling point of NAC that attracted the state-run pension fund to invest, he added.

The company aims to become a premier environmental, social, and governance investment and among the top 25 companies under PSE by 2025.

On Thursday, shares of Nickel Asia rose 35 centavos or 5.38% to close at PHP 6.86 apiece.— By Sheldeen Joy Talavera

This article originally appeared on bworldonline.com

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