Meralco, through its subsidiary MGen Renewable Energy Inc. or MGreen, has formalized its P15.9-billion investment into  SP New Energy Corp. or SPNEC through the signing of a subscription agreement last Thursday. 

In a stock report on Friday, SPNEC disclosed that it received an initial payment of P7 billion from MGreen last 30 November.

The remaining P8.9 billion, on the other hand, will be paid by the closing date.

Once the transaction is closed, MGreen will own 15.7 billion common shares and 19.4 billion preferred shares of SPNEC, translating to a total voting interest of 50.5 percent. 

MGreen is the renewable energy development arm of Meralco Powergen Corp., a wholly-owned subsidiary of the Manila Electric Company or Meralco, the country's largest power distribution utility company.

SPNEC is currently majority-owned by Solar Philippines Power Project Holdings Inc.

MGreen and SPH have agreed to use SPNEC as the primary vehicle to develop 3500 megawatts of solar and 4000 megawatt-hours of battery storage in Luzon.

"This will be one of the largest solar projects not just in Asia, but in the world," Manuel V. Pangilinan, chairman and CEO of Meralco, previously said. 

"The Department of Energy's vision is to have about 35 percent of the country's energy come from renewable energy, and this is one of Meralco's major contributions to this goal."

Trading resumes

In a separate development, SPNEC resumed trading its shares at the Philippine Stock Exchange on Friday, 1 December after it met the bourse's minimum public ownership requirement of 20 percent.

SPNEC's public ownership fell below 20 percent after the approval of its increase in authorized capital stock from 10 billion to 50 billion shares, to support the expansion of its project portfolio.

SPNEC disclosed that it and SPH are planning several measures to increase the public ownership of its shares, including a follow-on offering and private placement.