MGen Renewable Energy Inc. (MGreen), a subsidiary of Manila Electric Company (Meralco), has completed its P15.9 billion acquisition of a controlling stake in SP New Energy Corporation (SPNEC).

This comes after the Securities and Exchange Commission (SEC) approved the amendment to SPNEC’s articles of incorporation for the increase in authorized capital stock from 50 billion to 75 billion common shares and 25 billion preferred shares.

Following the capital hike SPNEC issued to MGreen 15.7 billion of its common shares and 19.4 billion preferred shares.

With the SEC's approval and the issuance of these shares, the final conditions for MGreen's investment have now been satisfied and MGreen is now the controlling shareholder of SPNEC with a total voting interest of 50.5 percent.

The increase in authorized capital stock also enables SPNEC to pursue further fundraising exercises, including a follow-on offering.

The company has disclosed that proceeds from MGreen's investment and other fundraising exercises will be used for the P200 billion Terra Solar project.

The company has also disclosed that the project will be funded from a combination of capital infusion (including the investment of MGreen) and project financing.

Referred to as "world's largest solar project", the project is planned to consist of 3500 MW of solar panels and 4000 MWh and is now 100 percent owned by SPNEC.

Late last December, tycoon Manuel V. Pangilinan had already taken over the helm of as chairman of the Board of Directors as well as president and chief executive officer.

He took over from SPNEC Founder Leandro Leviste who has been elected as vice chairman by the board of directors.

This came after MGreen made its balance payment of P8.9 billion for the P15.9 billion acquisition.

SPNEC also appointed Amanda Roselle A. Bengson as Director, Chief Compliance Officer, and Corporate Secretary; Pedro Emilio O. Roxas as Independent Director; Dominador M. Camu Jr. as Chief Operating Officer; Anthony Matthew N. Co as Assistant Treasurer; and Jo Marianni P. Ocampo as Assistant Corporate Secretary.

MGreen is the renewable energy development arm of Meralco Powergen Corporation, a wholly-owned subsidiary of the Manila Electric Company, the country’s largest private sector electric distribution utility company.

Prior to the transaction, Solar Philippines sold 1.6 billion secondary shares of SPNEC for P2 billion to Metro Pacific Investments Corporation and entered into an Option Agreement to sell up to 7.4 billion secondary shares for up to P9.25 billion. Based on 50.1 billion shares outstanding, this would value SPNEC at P63 billion.