Solar Philippines Nueva Ecija Corporation (SPNEC) aims to complete its acquisition of the assets of parent company Solar Philippines worth about P60 billion by the end of this year.
In a disclosure to the Philippine Stock Exchange, the firm said that the conclusion of its P3.3 billion Stock Rights Offering (SRO) in the coming weeks would pave the way for the completion of its asset-for-share swap.
“We aim to complete the private placements to increase the public float for the share swap by the end of 2022,” said Solar Philippines founder Leandro Leviste during a briefing.
In light of its share swap, SPNEC previously disclosed that it would also consider various options to increase its public float. The company now confirms that it is in discussions with investors for private placements.
This is in addition to its SRO, with an offer period scheduled from August 30 to September 5. With the completion of these share issuances, it aims to complete the development of 10 GW of solar projects.
“Our job is for these offerings to cover the equity required to complete the development of 10 GW of solar projects, while retaining an average of at least 50 percent economic interest,” noted Leviste.
He explained that, “SPNEC’s model is to create value through project development, investing for a smaller percentage of the cost that catalyzes larger investments, in the same way that we have in our earlier projects.”
Solar Philippines and SPNEC have now signed the share swap agreement for the issuance of 24.37 billion shares at an issue price of P2.50 per share, in exchange for the shares of Solar Philippines in a portfolio of projects.
The share swap agreement is due to be filed for regulatory approval, with the issuance of shares planned alongside the private placements.
These projects would include over 400 MW operating or under construction and the 3.5 GW solar, 4.5 GWh battery Terra Solar project, which plans to supply Meralco mid-merit for around 12 hours per day.
It also includes 1.8 GW of projects contracted under the Department of Energy’s Green Energy Auction, in which Solar Philippines won 70 percent of the auction’s renewable energy capacity and 91 percent of the solar capacity.
Also part of the assets is the 1.8 GW solar, 1.8 GWh battery project of Solar Philippines Batangas Baseload Corporation which has secured original proponent status for its proposal to supply Meralco baseload for up to 24 hours per day.
Together with its Nueva Ecija solar project, these would complete the company’s targeted 9 TWh per year of contracted energy, and potentially bring SPNEC’s contracted capacity to 8 GW scheduled to commence operations mostly between 2025 to 2026, which it estimates would be 2/3 of the total contracted renewable energy capacity of the Philippines.