SPNEC approves swap deal with parent firm

BY VG CABUAG – FEBRUARY 28, 2022
from Business Mirror

THE board of listed firm Solar Philippines Nueva Ecija Corp. (SPNEC) has approved an asset-for-share swap involving the acquisition of Solar Philippines Power Project Holdings Inc. and 20 other units of the company’s parent firm Solar Philippines Inc.

Solar Philippines Inc. assets would be acquired through an asset-for-share swap in exchange for 24.37 billion shares of SPNEC at an issue price of P2.50 per share.

SPNEC shares was last traded on Friday and closed at P1.84 apiece.

Once completed, SPNEC would own shares in Solar Philippines Calatagan Corp. Solar Philippines Tarlac Corp., Solar Philippines Tanauan Corp., Terra Solar Philippines Inc., SP Holdings Inc., Solar Philippines Batangas Baseload Corp., Solar Philippines Central Luzon Corp., Solar Philippines South Luzon Corp., Solar Philippines Southern Tagalog Corp., Solar Philippines Eastern Corp., Solar Philippines Western Corp., Solar Philippines Visayas Corp., Solar Philippines Central Visayas Corp., Solar Philippines Southern Mindanao Corp., Solar Philippines Batangas Corp., Solar Philippines Retail Electricity Inc., Laguna Solar Rooftop Corp., Solar Philippines Rooftop Corp. and Solar Philippines Commercial Rooftop Projects Inc.

“While we could have issued shares in exchange for the Solar Philippine assets relative to SPNEC’s existing shares at a ratio of 5-to-1, we have opted for a ratio of only 3-to-1, resulting in less dilution and greater value per share,” Solar Philippines president and CEO Leandro L. Leviste said. “We have done so to share more upside with our public shareholders, who we consider to be our partners in building this company for the long term.”