Meralco PowerGen Corp. (MGen), a subsidiary of Manila Electric Co., acquired P7.5 billion worth of shares in renewable firm SP New Energy Corp. (SPNEC).
MGen acquired 5.8 billion shares in SPNEC from Solar Philippines Power Project Holdings Inc. of businessman Leandro Leviste. This is equivalent to 11.6-percent stake in the renewable company.
Solar Philippines said in a statement Wednesday MGen’s wholly-owned subsidiary MGen Renewable Energy Inc. paid P6.7 billion for the shares, with an additional P800 million to be paid upon the completion of the planned entry of another investor into Terra Solar Philippines Inc.
The transaction increases MGen and its affiliates’ stake in SPNEC to 50.5 percent, or equivalent to 25.3 billion shares.
Prior to the transaction, Meralco and Metro Pacific Investments Corp. own 19.5 billion shares or 38.9 percent in SPNEC. Meanwhile, Solar Philippines continues to own 14.7 billion shares or 29.4 percent of SPNEC.
MGen and SPNEC chairman Manuel Pangilinan in August expressed willingness to acquire more shares in SPNEC, which is developing what could be the world’s the largest single-site solar project.
SPNEC, through Terra Solar, is developing a 3,500-megawatt utility scale solar project with 4,500 megawatt-hour battery energy storage system in Nueva Ecija and Bulacan provinces costing P200 billion.
The project acquired 2,620.8 hectares across five municipalities and 11 barangays, of which 1,932.9 hectares are for phase 1 and the balance for the subsequent phase.
Pangilinan said to help finance the huge project, SPNEC was in the process of talking to potential investors, with the help of financial advisors.
SPNEC’s stock rose 1.57 percent Wednesday to close at P1.29.
