SPNEC plots market comeback with P4.98-B deal
MGEN Renewables Inc., formerly SP New Energy Corp. (SPNEC), is consolidating more renewable energy assets under its listed company through a P4.98-billion share swap—a move that could boost earnings, attract bigger investors, and open the door to another public offering.
In a disclosure on Wednesday, SPNEC said its board approved the acquisition of five renewable energy investments from MGEN Renewable Energy Inc. in exchange for approximately 3.1125 billion newly issued shares.
“The share swap is expected to strengthen the Company’s investment profile by expanding its revenue base through the addition of cash-generating operating assets,” the company said.
The transaction would also cement SPNEC's position as Meralco PowerGen Corp.’s primary listed renewable energy platform, potentially making it more attractive to institutional investors and supporting future fundraising, including a possible re-initial public offering.
The assets cover shareholdings in Greenergy for Global Inc., Greentech Solar Energy Inc., CACI Power Corp., Nuevo Solar Energy Corp., and PowerSource First Bulacan Solar Inc.
The deal values the assets at P4.98 billion, with SPNEC shares priced at P1.60 each, a 30.08-percent premium over their 23 October closing price of P1.23.
SPNEC is also committing more capital to its massive MTerra Solar project as it seeks to turn its growing renewable energy portfolio into stronger profits.
Its wholly owned subsidiary, Terra Nueva Inc., will subscribe to additional preferred shares in Terra Solar Philippines Inc. worth up to P7.815 billion, subject to regulatory and other required consents.
Pending these approvals, the company has authorized additional funding of up to P1.8825 billion.
The investments come as MTerra Solar begins delivering earnings after years of development.
As of September, the project had sold 623 gigawatt-hours of electricity, backed by 1,701 megawatts of installed solar capacity and 825 megawatts of battery storage capacity.
Terra Solar posted P1.1 billion in core net income in the first nine months, with another P500 million expected in the fourth quarter, bringing its projected full-year profit to P1.6 billion.
The improving performance is expected to help SPNEC return to profitability this year.
SPNEC expects a P774-million net income for the year, a sharp reversal from its P4.1-billion net loss in 2025.