Infrastructure conglomerate Metro Pacific Investments Corp. is acquiring a 16-percent stake in solar energy provider SP New Energy Corp. for P2 billion.
Based on the definite agreement signed by the two parties, MPIC will acquire 1.6 billion secondary shares owned by Solar Philippines Power Project Holdings Inc. in SPNEC at P1.25 per share.
MPIC said in a stock exchange filing Tuesday it was given the option to further increase its stake to 43 percent, making it the largest shareholder of SPNEC. This plan is still subject to an increase in the company’s authorized capital stock to P50 billion from P10 billion.
MPIC said the deal is part of its overall plan to increase the group’s investments in the renewable energy sector. It also aims to make SPNEC the largest renewable energy company in the Philippines.
“Our thrust of pursuing renewable energy brings the MVP Group one step closer to fulfilling our mission of creating long-term value for our stakeholders through responsible and sustainable investments,” said MPIC chairman and president Manuel Pangilinan.
Pangilinan will become chairman of the board of SPNEC, replacing Leandro Antonio Leviste, upon the closing of the transaction.
SPNEC said it would use the proceeds from the transaction to fund land investments in Nueva Ecija, where the company is developing what could be Asia’s largest solar project.
SPNEC develops, constructs and operates solar power plants primarily in Luzon. It plans to develop 10 gigawatts of solar projects by 2025.
SPPPHI founder and president Leandro Leviste said in a statement the partnership with MPIC is a part of SPNEC’s strategy to bring in an equity partner to support projects.
“We have long seen a partnership with MPIC to be the key to unlock the potential of our project pipeline. We are humbled and grateful for this opportunity, and believe that SPNEC now has the final ingredients to realize the value of our developments for the benefit of all stakeholders,” said Leviste.
Manila Electric Co. through power generation arm Meralco PowerGen Corp. also owns renewable energy firm MGen Renewable Energy Inc. MPIC holds a substantial stake in Meralco.
UBS acted as the financial advisor on the transaction.