Metro Pacific Investments Corp. (MPIC) is looking to invest as much as P21.75 billion into SP Energy Corp. (SPNEC) on top of the P2 billion it invested into the company in March.
SPNEC said it signed an option agreement with MPIC and mother company, Solar Philippines Power Project Holdings Inc., for MPIC 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 hinges on SPNEC successfully raising its authorized capital stock to 50 billion from the current 10 billion.
“Together with the initial acquisition by MPIC of 1.6 billion shares for P2 billion (as disclosed on March 28 2023), a full exercise of these options may result in the MPIC Group investing a total of P23.75 billion for 19 billion shares and becoming the largest shareholder with approximately 42.82 percent,” SPNEC told regulators.
In March, MPIC bought into SPNEC for P2 billion covering 1.6 billion share held by Solar Philippines.
Solar Philippines said the sale proceeds will be used to fund its SPNEC’s land investments in Nueva Ecija, where the company is developing what could be Asia’s largest solar project.
MPIC said its investment into SPNEC is guided by the government’s plan to have 35 percent of the country’s energy come from renewable energy by 2030.
“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 said.
