MANILA, Philippines — Metro Pacific Investments Corp. (MPIC), the tollways and infrastructure conglomerate led by Manuel V. Pangilinan, is acquiring up to 43 percent of SP Energy Corp. (SPNEC) for P24 billion.
MPIC, Solar Philippines Power Project Holdings Inc. (SPPPHI) and SPNEC, have signed definitive agreements granting MPIC or its affiliates the option to invest up to a total of P24 billion for 19 billion shares in SPNEC, which will make MPIC the largest shareholder in the solar company with a 43 percent stake.
The parties signed the option agreement last week, granting MPIC the option to acquire up to 17.4 billion SPNEC shares, comprising up to 10 billion primary shares for up to P12.5 billion and up to 7.4 billion secondary shares for up to P9.25 billion.
This is subject to SPNEC’s increase in authorized capital stock from 10 billion to 50 billion shares.
This is in addition to MPIC having completed the acquisition from SPPPHI of an initial 1.6 billion SPNEC shares for P2 billion, signed on March 27, 2023.
With MPIC’s investment, SPNEC aims to become the largest renewable energy company in the Philippines. This will be done through the acquisition of shares of SPPPHI in various entities and funding of its developments.
Of the different projects in SPNEC’s pipeline, the largest of the projects is in Nueva Ecija, where SPNEC is developing what could be Asia’s largest solar project.
MPIC’s investment into SPNEC is guided by the vision of the Department of Energy that 35 percent of the country’s energy will come from renewable energy by 2030.
“Our thrust of pursuing renewable energy brings the MVP Group one step closer to fulfilling our mission of creating long-term value for our stakeholders through responsible and sustainable investments,” said MPIC chairman and president Manuel V. Pangilinan.
SPNEC is an integrated developer, owner, and operator of solar power projects while MPIC is a company with investments in power, toll roads, water, transportation, healthcare and real estate.
SPNEC chief executive officer Leandro Leviste said the partnership with MPIC is the key to unlock the potential of the company’s project pipeline.