ACEN, the energy arm of the Ayala Group, has acquired 500 million shares in SPNEC, a unit of Leviste-led Solar Philippines, for P660 million based on the current market value.
In a stock report on Wednesday, ACEN said its Executive Committee approved the acquisition as pre-payment for part of a loan to Solar Philippines.
“(The loan) has a repayment date of 2 July 2026 and in consideration of the release of a pledge of shares of Solar Philippines in SPNEC,” the company disclosed.
Following the acquisition of the shares, ACEN now owns 5 percent of the outstanding shares of SPNEC.
In June 2021, ACEN signed a P1-billion Omnibus Loan and Security Agreement with Solar Philippines affiliate, Provincia Investments Corporation to acquire various project sites for solar power projects.
The fund will be secured through real estate mortgage over Provincia Investments and third-party mortgagors’ title to, or rights and interests over real assets favoring ACEN. It would also involve a mortgage and pledge over the shareholding of Solar Philippines in one of its fully-owned subsidiaries.
SPNEC aims to complete the development of 10 gigawatts of solar projects by 2025, which would help address the country’s potential power shortage.
Early this month, SPNEC bared that it eyes completing the industrial land conversion of over 3000 hectares of properties in Nueva Ecija and Bulacan this year after the company successfully secured off-take agreements for its projects last year.
The largest project of Solar Philippines is under Terra Solar Philippines, Inc., a joint venture that has a Power Supply Agreement with Meralco to supply 850 megawatts of mid-merit from a planned 3.5 gigawatts solar, 4.5 gigawatt-hours battery project.
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