Meralco expects to complete purchase of SPNEC’s majority stake this year
By Alena Mae S. Flores – November 7, 2023, 8:12 pm
from manilastandard.net
Power retailer Manila Electric Co. (Meralco) expects to complete the acquisition of a majority stake in SP New Energy Corp. (SPNEC) by yearend, a top executive said Tuesday.
The transaction would pave the way for the development of 3,500 megawatts of solar panels and 4,000 megawatt-hours of battery energy storage systems in Luzon that would involve P200 billion investments.
“In terms of what our aim is, for closing, we’re hoping that it could be done by yearend because they should be able to energize sometime first quarter 2026, first 600 MW out of 850 MW,” Meralco chairman Manuel Pangilinan said.
“It attracted a lot of interest from foreign investors because it’s big. It’s transformative actually for the Philippines,” Pangilinan said.
Meralco announced last month it would invest P15.9 billion to take a majority stake in SPNEC and develop the country’s biggest solar power plant.
MGen Renewable Energy, Inc. (MGreen) signed an agreement with SPNEC and parent firm Solar Philippines Power Project Holdings, Inc (SPH) to subscribe to 15.7 billion common shares and 19.4 billion redeemable preferred voting shares in SPNEC.
The transaction would result in Meralco owning 31.4 percent of SPNEC’s common shares, based on SPNEC’s 34.37 billion existing common shares and having a 50.5 percent voting interest (including the redeemable preferred shares).
“This will be one of the largest solar projects not just in Asia, but in the world,” said Pangilinan.
SPNEC will file its application for an increase in authorized capital stock to enable the investment, while the fresh injection of capital by MGreen will fund the construction and expansion of the solar projects.
SPNEC, majority-owned by SPH, is an integrated developer, owner and operator of solar power projects listed in the Philippine Stock Exchange.
UBS acted as financial advisor in the transaction. SyCip Salazar Hernandez and Gatmaitan and Gulapa Law were legal advisors to both Meralco and MGreen. King & Spalding and Picazo Law acted as legal advisors to SPH and SPNEC.
