Manila Electric Co. through its unit MGen Renewable Energy Inc. (Mgreen) made an initial payment of P7 billion as part of its plan to acquire a majority stake in solar energy producer SP New Energy Corp.
SPNEC said in a statement Friday it received the P7-billion initial payment from MGreen, with the balance of P8.9 billion to be paid by the closing date.
MGreen signed an agreement with SPNEC and parent firm Solar Philippines Power Project Holdings Inc. (SPH) in October to subscribe to 15.7 billion common shares and 19.4 billion redeemable preferred voting shares in SPNEC.
The transaction will result in Meralco owning 31.4 percent of SPNEC’s common shares based on the latter’s 34.37 billion existing common shares and having a 50.5-percent voting interest, including the redeemable preferred shares.
MGreen and SPH also agreed to use SPNEC as the primary vehicle to develop 3,500 megawatts of solar and 4000 MWh of battery storage in Luzon.
“This will be one of the largest solar projects not just in Asia, but in the world,” said Meralco chairman and chief executive Manuel Pangilinan.
“The Department of Energy’s vision is to have about 35 percent of the country’s energy come from renewable energy, and this is one of Meralco’s major contributions to this goal,” Pangilinan said.
Meanwhile, the Philippine Stock Exchange on Friday lifted the trading suspension on SPNEC after it complied with the 20-percent minimum public ownership.
SPNEC said in a disclosure to the stock exchange its public float is now at 20.02 percent after its parent firm donated over 2 billion shares to Asia Pacific Institute for Green Development Inc.
“Based on the foregoing representations and information provided by SPNEC, the exchange has determined that the company has complied with the required minimum public ownership requirement,” the PSE said.
The trading of SPNEC has been suspended since June 1, 2023 after its public float fell below 20 percent and the Securities and Exchange Commission approved its proposed increase in authorized capital stock, which resulted in the issuance of 24.37 billion shares to SPH.
SPNEC said that it and SPH were planning several measures to increase the public ownership of its shares, including a follow-on offering and private placements.