SP New Energy Corp. (SPNEC) said Monday the Securities and Exchange Commission’s (SEC) approved the proposed increase in authorized capital stock to P7.75 billion from P5 billion.
SPNEC said in a disclosure to the stock exchange it received the SEC approval for the amendment to its articles of incorporation and increase in authorized capital stock to P7.75 billion divided into 75 billion common shares and 25 billion preferred shares.
The company issued 15.7 billion common shares and 19.4 billion shares to MGen Renewable Energy Inc. (MGreen) following the SEC approval, making it the biggest shareholder of the company with 50.5-percent stake.
SPNEC received P15.9 billion worth of fresh capital in exchange.
“With the SEC’s approval and the issuance of these shares, the final conditions for MGreen’s investment have now been satisfied and MGreen is now the controlling shareholder of SPNEC with a total voting interest of 50.5 percent,” SPNEC said.
MGreen, the renewable energy development arm of Meralco Powergen Corp. (MGen), agreed in October to invest P15.9 billion in SPNEC as part of its thrust to expand its portfolio of renewable energy projects.
SPNEC said the increase in authorized capital stock will also enable it to pursue further fundraising exercises, including a follow-on offering, to fund existing renewable projects.
The company earlier disclosed that proceeds from MGreen’s investment and other fundraising exercises would be used to finance the P200-billion Terra Solar project.
Terra Solar project located in Nueva Ecija, seen as the world’s largest solar project, will develop a 3.5-gigawatt solar and 4-gigawatt-hour battery storage project.
The planned solar farm would be larger than India’s Bhadla Solar Park and China’s Golmud Solar Park, the world’s largest solar farms at over 2.2 GW.
SPNEC said this would also exceed the capacity of all grid-connected solar projects operating in the Philippines combined at over 1.5 GW based on the Department of Energy’s latest figures.
The stock of SPNEC closed higher Monday by 1.64 percent to P1.24.