MANILA - The Securities and Exchange Commission has approved SM Investment Corp's acquisition of 81 percent stake in AllfirstEquity Holdings Inc in exchange for SMIC shares, the Sy-led firm said Tuesday.

Allfirst is the holding company for the Philippine Geothermal Production Company Inc (PGPC).

The deal will bring SMIC's ownership in PGPC to 100 percent, the group said in a disclosure to the stock exchange.

The total consideration paid for is at P15.76 billion, SMIC said, adding that it involves the issuance of 17.44 million new shares to the sellers.

SMIC said the acquisition would allow the company to invest directly in clean renewable energy-related production.

"The acquisition of PGPC is sizeable, accretive to our shareholders and a strong strategic fit with our portfolio of investments in high growth sectors in the Philippines," SMIC president and CEO Frederic Dybuncio said.

"It further reinforces the SM Group's commitment to sustainability, good governance and acting as a catalyst for responsible development in the communities we serve," he added.

PGPC operates Tiwi steam field in Albay, the first commercial-scale geothermal steam field in Southeast Asia and Mak-Ban in Laguna, among others.

The two have a combined capacity to generate geothermal steal sufficient to produce about 300 MW of electricity, SMIC said.

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