Manila Electric Co. (Meralco) is investing P15.9 billion in SP New Energy Corp. (SPNEC).
SPNEC said Meralco unit MGen Renewable Energy Inc. (MGreen) signed the subscription agreement last week, where MGreen made an initial payment of P7 billion, with the balance of P8.9 billion to be paid by the closing date .
“Upon closing, MGreen will own 15.7 billion common shares and 19.4 billion preferred shares of SPNEC, translating to a total voting interest of 50.5 percent,” SPNEC said.
MGreen is the renewable energy development arm of Meralco Powergen Corp., a wholly-owned subsidiary of Meralco. SPNEC is currently majority-owned by Solar Philippines Power Project Holdings Inc. (SPH).
“MGreen and SPH have agreed to use SPNEC as the primary vehicle to develop 3500 MW of solar and 4000 MWh of battery storage in Luzon,” the company said.
MGreen’s investment comes as SPNEC shares resumed trading on the Philippine Stock Exchange (PSE), upon its compliance with the PSE’s minimum public ownership requirement of 20 percent. SPNEC’s public ownership fell below 20 percent after the approval of its increase in authorized capital stock from 10 billion to 50 billion shares, to support the expansion of its project portfolio.
SPNEC and SPH are planning several measures to increase the public ownership of its shares, including a follow-on offering and private placements, the company said.
SPNEC said it is in discussions with investors, its advisors and potential underwriters for these potential transactions.
Metro Pacific Group, of which Meralco is a part of, invested P2 billion into SPNEC in March, buying a stake of SPH.