Pangilinan-led Manila Electric Company is gaining a firmer control over SP New Energy Corporation (SPNEC) by raising its interest to 50.5 percent with the acquisition of an additional stake worth P7.5 billion from its founder Leandro Leviste.
Meralco PowerGen Corporation (MGen) is buying another 5.8 billion shares, or 11.6 percent of SPNEC, from Leviste’s Solar Philippines Power Project Holdings, Inc. (Solar Philippines), said a social media announcement posted by Solar Philippines.
This will bring MGen and its affiliates’ total investment in SPNEC to P27.9 billion, or 25.3 billion shares, or 50.5 percent.
On September 3, MGen’s wholly-owned subsidiary, MGen Renewable Energy, Inc. paid Solar Philippines P6.7 billion, with an additional P0.8 billion to be paid to Solar Philippines upon the completion of the planned entry of another investor into Terra Solar Philippines, Inc. (Terra Solar).
After these transactions, Solar Philippines will continue to own 14.7 billion shares or 29.4 percent of SPNEC.
Before this transaction, Meralco and Metro Pacific Investments Corporation owned 19.5 billion shares or a 38.9 percent economic share. Plus the 5.8 billion shares now, it becomes 25.3 billion shares or 50.5 percent economic share. Meralco had also previously acquired redeemable preferred shares that gave it majority voting power but no additional economic interest.
MGen and SPNEC Chairman Manuel V. Pangilinan previously said that MGen would be keen to increase its stake in SPNEC.
“If it’s open, why not? It’s a good project. It owns 100 percent of Terra Solar for now. It’s the largest single-site solar facility in the world, and the Philippines should be proud of that,” Pangilinan said last August 19.
SPNEC’s share price closed at P1.27 on September 3, up 23 percent since Pangilinan’s remarks were published on August 19.
Pangilinan’s statement about increasing MGen’s stake in SPNEC followed his comment that “a very long list of investors” have expressed interest in investing in Terra Solar, adding that “I think the actual bid date for the binding offer should be Aug. 15. So by the end of August, the board will have to choose.”
“The Terra Solar project remains on track for key milestones, with significant progress anticipated in the coming months,” SPNEC President and CEO Emmanuel Rubio said.
Currently SPNEC’s wholly-owned subsidiary, Terra Solar is developing a solar project in Nueva Ecija and Bulacan with a planned capacity of 3500 MW solar and 4000 kWh battery storage, which when completed is said to be the largest project of its kind in the world.