MGen completes takeover of SPNEC

MGen Renewable Energy Inc. (MGreen), a subsidiary of Manila Electric Co., has completed its P15.9billion investment in SP New Energy Corp. (SPNEC).

This, after SPNEC was given the green light by the Securities and Exchange Commission (SEC) to raise its authorized capital stock from 50 billion to 75 billion common shares and 25 billion preferred shares.

SPNEC, the listed solar energy company founded by Leandro Leviste, issued 15.7 billion common shares and 19.4 billion preferred shares to MGreen, Meralco’s renewable energy development arm.

“With the SEC’s approval and the issuance of these shares, the final conditions for MGreen’s investment have now been satisfied and MGreen is now the controlling shareholder of SPNEC with a total voting interest of 50.5 percent,” SPNEC said in a disclosure.

The increase in capital stock also allows SPNEC to pursue further fundraising exercises, including a follow-on offering.

Proceeds from MGreen’s investment would be used for the P200billion Terra Solar Project.

With this transaction, Pangilinan was elected as chairman, president, and CEO of SPNEC with Leviste as vice-chairman.

SPNEC likewise appointed Amanda Roselle Bengson as director, chief compliance officer, and corporate secretary; Pedro Emilio Roxas as independent director; Dominador Camu Jr. as COO; Anthony Matthew Co as assistant treasurer and Jo Marianni Ocampo as assistant corporate secretary.

In May last year, MGreen announced that it was acquiring a controlling stake in SPNEC in line with efforts to build a renewable energy capacity of 1,500 megawatts by 2030.

MGreen plans to use SPNEC as the primary vehicle to develop 3,500-MW of solar panels and 4,000 megawatt-hours of battery energy storage systems in Luzon, seen as one of the largest solar projects not just in Asia, but in the world.

As the newest member of the MVP Group of Companies, SPNEC would be able to grow exponentially which in turn, will translate to shared benefits for its shareholders, Leviste said.