Publicly-listed SP New Energy Corp. (SPNEC) has acquired projects from its parent company Solar Philippines, marking the company’s start of commercial operations.
SPNEC said it signed on May 15 a deed of absolute sale to acquire Solar Philippines shares in Solar Philippines Tarlac Corp. and Solar Philippines Rooftop Corp., which together own over 100 megawatts of operational solar power plants and another over 50 MW under construction. SPNEC will begin to recognize revenue from these two operational companies starting from May 15, the company said.
This is the first batch of projects covered under a contract that SPNEC signed to acquire 100 percent of the shares of Solar Philippines in 17 companies using the proceeds of its subscription of 24.37 billion shares of SPNEC. This is premised on the approval of SPNEC’s increase in authorized capital stock.
These companies are Solar Philippines Calatagan Corp., Solar Philippines Tarlac Corp., Terra Solar Philippines Inc., Solar Philippines Batangas Baseload Corp., Solar Philippines Tarlac Baseload Corp., Solar Philippines Central Luzon Corp., Solar Philippines South Luzon Corp., Solar Philippines Southern Tagalog Corp., Solar Philippines Eastern Corp., Solar Philippines Western Corp., Solar Philippines Visayas Corp., Solar Philippines Southern Mindanao Corp., Solar Philippines Batangas Corp., Solar Philippines Retail Electricity Inc.; Laguna Solar Rooftop Corp. and Solar Philippines Rooftop Corp.
The said deal comes after the signing of the option agreement between Metro Pacific Investments Corp., Solar Philippines and SPNEC. The deal grants MPIC or its affiliates the option to invest in almost 43 percent of SPNEC for P23.75 billion.
“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 the MPIC group 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.
After the consolidation of the assets of Solar Philippines, SPNEC would own projects with close to 1 gigawatt operating or under construction and a total pipeline of over 8 GW with the country’s largest contracted capacity of renewable energy projects.
The company said all of these efforts are being done with the goal of making SPNEC the largest renewable energy company in the Philippines.