Share swap, capital hike approved by SPNEC shareholders

MANILA, Philippines — Shareholders of Solar Philippines Nueva Ecija Corp. (SPNEC) approved yesterday the increase in the company’s authorized capital stock to 50 billion shares from 10 billion shares, as well as the related share swap.

SPNEC’s share swap involves the issuance of 24.37 billion shares at P2.50 per share in exchange for shares of Solar Philippines in over 20 companies.

The newly-listed company’s goal is to develop over 10 gigawatts of power capacity and create P15 million per megawatt of value from the 10 GW of developments by 2025.

Once the asset-for-share swap is completed, SPNEC would own shares in companies such as Solar Philippines Calatagan Corp., Solar Philippines Tarlac Corp., Solar Philippines Tanauan Terra Solar Philippines, SP Holdings, Solar Philippines Batangas Baseload, Solar Philippines Central Luzon, Solar Philippines South Luzon, Solar Philippines Visayas, Solar Philippines Retail Electricity, Solar Philippines Rooftop and Solar Philippines Commercial Rooftop Projects Inc.

These entities hold 33 Solar Energy Service Contracts (SESC’s) with the Department of Energy (DOE), with an operational capacity of 169.36 MW and capacity under development of 14,395.03 MW or over two thirds of the total 21,302.32 MW across all DOE’s service contracts in the Philippines.

Solar Philippines’ planned 10 GW of projects are pursuant to agreements with various companies.

The largest share is reserved for its joint venture with Razon-led Prime Infra, which may use the first 1,000 hectares already being acquired by SPNEC and further land to be acquired.

SPNEC also plans to raise at least P10 billion from the issuance to the public of at least 5.12 billion shares to complete the development of 10 GW of solar projects, through a stock rights offering and a possible private placement and follow-on offering.