Metro Pacific Investments Corp. (MPIC) has signed an agreement with Solar Philippines Power Project Holdings Inc. (SPPPHI) and listed SP New Energy Corp. (SPNEC) which will grant MPIC or its affiliates the option to increase its stake in the solar company.
According to their respective disclosures, MPIC will have the option to invest up to a total of P23.75 billion for 19 billion shares and become the largest shareholder with approximately 42.82 percent of SPNEC.
“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,” SPNEC and Solar Philippines CEO Leandro Leviste said.
The option agreement signed on May 5 grants MPIC the option to acquire up to 17.4 billion SPNEC shares, comprising up to 10 billion primary shares for up to P12.5 billion and up to 7.4 billion secondary shares for up to P9.25 billion. This is subject to SPNEC’s increase in authorized capital stock to 50 billion shares from 10 billion shares.
This is on top of MPIC’s earlier completion of the acquisition from Solar Philippines of an initial 1.6 billion SPNEC shares for P2 billion, signed on March 27.
With MPIC’s investment, SPNEC plans to expedite the acquisition of shares of SPPPHI in various entities and funding of its developments, with the goal of making SPNEC the largest renewable energy company in the Philippines.
The largest of these projects is in Nueva Ecija, where SPNEC is developing what could be Asia’s largest solar project.
MPIC’s investment into SPNEC is guided by the vision of the Department of Energy that 35 percent of the country’s energy should come from renewable energy by 2030.
“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,” MPIC Chairman and President Manuel V. Pangilinan said during the signing for MPIC’s initial investment.
SPNEC is an integrated developer, owner, and operator of solar power projects while MPIC is a company with investments in power, toll roads, water, transportation, healthcare and real estate.
