Meralco hikes stake in solar energy firm

MANILA Electric Co. (Meralco), through subsidiary MGreen Renewable Energy Inc. (MGreen), has infused an additional P2.5 billion in SP New Energy Corp. (SPNEC), further consolidating its control of the solar energy firm.

SPNEC told the stock exchange last week that MGreen — the renewable energy development arm of Meralco Powergen Corp., a wholly owned subsidiary of Meralco — had acquired around 2.17 billion common shares, or 4.34 percent of SPNEC, from Solar Project Holdings Inc. at a price of P1.15 each.

Prior to this transaction, MGreen had already purchased 15.7 billion common shares, equivalent to 31.4 percent of SPNEC’s total outstanding common shares, plus 19.4 billion of its preferred shares.

Metro Pacific Investments Corp. — an affiliate of MGreen — last May made an initial acquisition of 1.6 billion SPNEC shares from Solar Philippines in a transaction valued at P2.0 billion.

Following these acquisitions, MGreen and its affiliates now own a total of about 19.47 billion common shares or 38.39 percent of the total outstanding common stock of the solar energy firm.

Along with the redeemable preferred shares, these investments bring the total voting interest of the Manuel Pangilinanled companies in SPNEC to 55.96 percent.

Solar Philippines, meanwhile, continues to hold approximately 19 billion shares of SPNEC, with other shareholders and the public owning the rest.

SPNEC earlier this month disclosed that its controlling shareholder was now MGreen of the Meralco group.

Pangilinal, who is Meralco chairman and chief executive officer, was appointed last December as chairman of the solar firm, which was founded by businessman Leandro Leviste.

SPNEC shares closed up by one centavo, or 0.86 percent, at P1.17 each last Thursday.