CONGLOMERATE Metro Pacific Investments Corp. (MPIC) has acquired an initial 16 percent in listed solar power company SP New Energy Corp. (SPNEC) worth P2 billion.
MPIC said it was given an option to become the biggest shareholder of SPNEC up to 43 percent once the solar power company increased its authorized capital stock to P50 billion from the current P10 billion.
The initial transaction involves a signing of a definitive agreement between the MPIC for the acquisition of 1.6 billion common shares of from SPNEC’s parent Solar Philippines Power Project Holdings Inc. (SPPPHI).
MPIC was represented by Chairman and President Manuel V. Pangilinan while SPPPHI was represented by its president and CEO Leandro Leviste. They both signed the agreement for the purchase of the secondary shares of SPNEC.
SPH will advance the proceeds to SPNEC to fund its land investments in Nueva Ecija, where the company is developing what could be Asia’s largest solar project.
Upon the closing of the transaction, Pangilinan will become chairman of the Board of SPNEC.
This is the first of several agreements through which the MPIC may acquire up to a total of about 19 billion common shares of SPNEC, subject to relevant approvals, with the goal of making SPNEC the largest renewable energy company in the Philippines.
“Our thrust of pursuing renewable energy brings the MVP Group one step closer to fulfilling our mission of creating long-term value for our stakeholders through responsible and sustainable investments,” Pangilinan said.
MPIC’s investment into SPNEC is guided by the vision of the Department of Energy that 35 percent of the country’s energy come from renewable energy by 2030.
SPNEC and SPH are in the process of completing an asset-for-share swap, in which Solar Philippines pipeline of over 8 gigawatts of projects will be consolidated under SPNEC.
When MPIC’s shares in SPNEC became 43 percent, this would position the conglomerate to be a leading contributor to the country’s renewable energy goals.
SPNEC creates value through solar project development. MPIC contributes capital and investment expertise to work collaboratively with management teams and key stakeholders to build profitably growing infrastructure leaders.
“We have long seen a partnership with MPIC to be the key to unlock the potential of our project pipeline. We are humbled and grateful for this opportunity, and believe that SPNEC now has the final ingredients to realize the value of our developments for the benefit of all stakeholders,” Leviste said.
