Metro Pacific Investments Corp. is buying into solar farm developer SP Energy Corp (SPNEC).
The company said it is buying an initial P2 billion worth of shares, equivalent to 1.6 billion of SPNEC shares held by mother company Solar Philippines Power Project Holdings Inc. (SPH).
SPH will then 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.
“This is the first of several agreements through which the MPIC Group 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,” MPIC said in a statement.
“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,” also said Manuel Pangilinan, MPIC chairman.
Upon the closing of the transaction, Pangilinan will become chairman of the board of SPNEC.
MPIC said its investment in SPNEC is guided by the government’s plan to have 35 percent of the country’s energy come from renewable energy by 2030.
It said it was also given the option to become the single largest shareholder of SPNEC.
“SPNEC and SPH are in the process of completing an asset-for-share swap where SPH’s pipeline of over 8 GW of projects will be consolidated under SPNEC. This would increase SPNEC’s outstanding shares from 10 billion to over 34.3 billion out of an authorized capital stock of 50 billion common shares, after which, the MPIC Group may acquire up to 43 percent of the total outstanding shares of SPNEC,” MPIC said.
“This would position MPIC to be a leading contributor to the country’s renewable energy goals, and is also a corollary to MPIC’s investments in biodiversity protection to help mitigate the devastating impacts of climate change,” it added
UBS acted as the financial advisor on the transaction.
