MGen Renewable Energy Inc. (MGreen), a unit of Manila Electric Company (Meralco), has bought an additional 2.17 billion shares in SP New Energy Corporation (SPNEC) from Solar Philippines Power Project Holdings Inc. for P2.5 billion.
In a disclosure to the Philippine Stock Exchange (PSE), SPNEC said the additional shares represent 4.34 percent of its outstanding capital and brings MGreen’s stake in the company to 55.96 percent.
Previously, MGreen acquired 15.70 billion common shares representing 31.4 percent of SPNEC’s total outstanding common shares, which, together with acquiring 19.40 billion preferred shares brought MGreen’s total voting interest in SPNEC to 50.53 percent.
On May 8 2023, Metro Pacific Investments Corporation (MPIC) also made an initial purchase from Solar Philippines Power Project Holdings, Inc. of 1.60 billion shares of SPNEC for P2 billion. MPIC is an affiliate of MGreen.
These acquisitions bring MGreen and its affiliates to a total of 19.47 billion common shares of SPNEC, or 38.89 percent of the total outstanding common shares of SPNEC acquired for P20.20 billion.
Along with its redeemable preferred voting shares, these acquisitions bring the total voting interest of MGreen and its affiliates to 55.96 percent.
This coincides with a change in control of SPNEC. As disclosed on Feb. 2, 2024, SPNEC is now controlled by MGreen, a wholly-owned subsidiary of Meralco Powergen Corporation, which in turn is a wholly-owned subsidiary of Meralco, whose largest shareholder is MPIC.
Solar Philippines continues to own 18.99 billion shares of SPNEC, with other shareholders and the public owning the remaining shares.
SPNEC has disclosed that proceeds from MGreen's investment and other fundraising exercises will be used for its 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.