Green energy unit boosts SPNEC, P2.5B

Together with the acquisition of 19.40 billion preferred shares in SPNEC, MGreen’s total voting interest in the renewable energy firm stood at 50.53 percent

MGen Renewable Energy Inc., or MGreen, a subsidiary of the Manila Electric Co., or Meralco, is pouring in P2.5 billion more to increase its shares in SP New Energy Corp., or SPNEC.

MGreen last week acquired an additional 2.17 billion shares of SPNEC from Solar Philippines Power Project Holdings Inc., representing 4.34 percent of SPNEC.

Previously, MGreen acquired 15.7 billion common shares equivalent to 31.4 percent of SPNEC’s total outstanding common shares.

Together with the acquisition of 19.40 billion preferred shares in SPNEC, MGreen’s total voting interest in the renewable energy firm stood at 50.53 percent.

In May 2023, it can be recalled that Metro Pacific Investments Corp. also made an initial purchase from Solar Philippines Power Project Holdings Inc. of 1.60 billion shares of SPNEC for P2 billion. MPIC is an affiliate of MGreen.

Collectively, these acquisitions bring MGreen and its affiliates to a total of 19.473 billion common shares of SPNEC, or 38.89 percent of the total outstanding common shares of SPNEC for P20.20 billion.

Majority shares with MGreen

Along with its redeemable preferred voting shares, these acquisitions bring the total voting interest of MGreen and its affiliates to 55.96 percent — coinciding with a change in control of SPNEC.

As disclosed on 2 February, SPNEC is now controlled by MGreen, which is a wholly-owned subsidiary of Meralco Powergen Corp., which in turn is a wholly-owned subsidiary of Meralco, whose largest shareholder is MPIC.

Presently, Solar Philippines continues to own 18,993,622,998 billion shares of SPNEC, with other shareholders and the public owning the remaining shares.

SPNEC will leverage the funds raised from the recent sale of shares to support its P200-billion Terra Solar project.

Touted as the “world’s largest solar project,” SPNEC plans to deliver a venture that consists of 3500 megawatts of solar panels and 4000 megawatt-hours.