SP New Energy Corp. said Wednesday it acquired a first batch of renewable projects from parent company Solar Philippines Power Project Holdings Inc. under its asset for share-swap agreement.
SPNEC said in statement it signed a deed of absolute sale to acquire SP’s shares in Solar Philippines Tarlac Corp. and Solar Philippines Rooftop Corp., which together own over 100 megawatts of operational solar power plants and another over 50 MW under construction.
SPNEC will begin to recognize revenue from these two operational companies on May 15, 2023.
The first batch of projects form part of the 17 solar projects that SPNEC plans to acquire from its parent firm in exchange for 24.37 billion shares of SPNEC.
The acquisition of the remaining solar projects is still subject to regulatory approval of SPNEC’s increase in authorized capital stock to P50 billion.
Other SP companies to be acquired by SPNEC include are Solar Philippines Calatagan Corp.; Terra Solar Philippines Inc.; Solar Philippines Batangas Baseload Corp.; Solar Philippines Tarlac Baseload Corp.; Solar Philippines Central Luzon Corp.; Solar Philippines South Luzon Corp.; Solar Philippines Southern Tagalog Corp.; Solar Philippines Eastern Corp.; Solar Philippines Western Corp.; Solar Philippines Visayas Corp.; Solar Philippines Southern Mindanao Corp.; Solar Philippines Batangas Corp.; Solar Philippines Retail Electricity Inc.; and Laguna Solar Rooftop Corp.
Post asset-for-share swap agreement, SPNEC would own solar projects with close to 1 gigawatts operating or under construction and a total pipeline of over 8 GW.
SPNEC said the asset-for-share swap agreement and its recent partnership with Metro Pacific Investments Corp. are being done with the goal of making company the largest renewable energy firm in the Philippines.
MPIC signed an agreement in March to invest P2 billion in SPNEC in exchange for 16-percent stake in the company. MPIC was also given option to become the single largest shareholder of SPNEC.
Meanwhile, the board of SPNEC approved the P970-million additional cash equity infusion of SP into the company.