MGen channels P7.5-B investment into Solar Phl

Leandro Leviste’s Solar Philippines Power Project Holdings Inc. (Solar Philippines) will receive a total of P7.5 billion from Meralco PowerGen Corp. (MGen) for another 5.8 billion shares or 11.6 percent more of SP New Energy Corp. (SPNEC).

The transaction, once complete, would bring MGen and its affiliates' total investment in SPNEC to P27.9 billion, covering 25.3 billion shares that represents 50.5 percent economic stake in the renewable energy firm. 

In a statement posted on its website, Solar Philippines said MGen’s wholly-owned subsidiary, MGen Renewable Energy, Inc. infused P6.7 billion into Solar Philippines last Tuesday. 

An additional P800 million, it said, will be paid upon the completion of the planned entry of another investor into Terra Solar Philippines Inc. (Terra Solar).

Before this transaction, Meralco and Metro Pacific Investments Corp.'s economic stake stood at 38.9 percent. The addition of 5.8 billion shares increased their combined ownership to 50.5 percent.

Although excluded "redeemable preferred shares" are now included in the calculation, Solar Philippines reiterated that Meralco's share will not exceed 50.5 percent in SPNEC. 

After these transactions, Solar Philippines said it will continue to own 14.7 billion shares, or 29.4 percent of SPNEC.

MGen and SPNEC Chairman Manuel V. Pangilinan previously said that MGen would be keen to increase its stake in SPNEC. 

“If it’s open, why not? It’s a good project. It owns 100 percent of Terra Solar for now. It’s the largest single-site solar facility in the world, and the Philippines should be proud of that,” Pangilinan said.

SPNEC’s share price closed at P1.27 on September 3, up 23 percent since Pangilinan’s remarks were published on August 19.

Pangilinan’s remarks about increasing MGen’s stake in SPNEC followed his comment that “a very long list of investors” have expressed interest in investing in Terra Solar. 

“I think the actual bid date for the binding offer should be August 15. So by the end of August, the board will have to choose.”

Meanwhile, Emmanuel Rubio, SPNEC’s newly elected president and CEO also said: “The Terra Solar project remains on track for key milestones, with significant progress anticipated in the coming months.”
 
Currently, SPNEC’s wholly-owned subsidiary, Terra Solar, is developing a solar project in Nueva Ecija and Bulacan with a planned capacity of 3500 MW solar and 4000 kWh battery storage. When completed, it is said to be the largest project of its kind in the world.