Meralco PowerGen Corp. (MGen) is moving ahead with plans to list its renewable energy subsidiary, MGEN Renewable Energy Inc. (MGreen), on the stock exchange through a backdoor listing via Solar Philippines Nueva Ecija Corp. (SPNEC).
Meralco chairman Manuel Pangilinan said in a recent interview that the company hopes to complete the planned backdoor listing through SPNEC this year.
Instead of an initial public offering (IPO), MGreen intends to consolidate its renewable assets under SPNEC, which is already listed on the Philippine Stock Exchange.
Pangilinan said SPNEC’s name will be changed after the transaction.
In March, MGen’s board approved the selection of advisers for MGreen’s planned listing on the local bourse.
MGen, a subsidiary of power distributor Meralco, has been expanding its renewable energy portfolio. SPNEC, originally developed by Solar Philippines, owns one of the country’s largest solar farms and has actively partnered with larger firms for capital and expansion.
MGreen boasts a net sellable generating capacity of 397.3 megawatts of pure renewable energy.
It also holds a stake in SPNEC, which has a controlling interest in Terra Solar Philippines Inc., the company developing MTerra Solar in Nueva Ecija.
Once completed, MTerra Solar is projected to be the world’s largest integrated solar photovoltaic and battery energy storage system, with a capacity of 3,500 megawatts peak solar energy and 4,500 MW alternating current battery.
MGreen aims for an initial 1,500 MW in its renewable energy portfolio.
Businessman-turned-politician Leandro Leviste reported last week that he had divested most of his stake in SPNEC. However, Leviste, through Solar Philippines Power Project Holdings Inc., still owns 8.16 billion shares of SPNEC, which he plans to sell via private placements.
SPNEC became the first solar company to conduct an IPO in the Philippines in 2021.