MANILA, Philippines — SP New Energy Corp. (SPNEC) has commenced the acquisition of the first batch of operating solar projects from its parent company Solar Philippines (SP).
The move consolidates SP’s assets and marks the start of commercial operations of SPNEC.
Last May 15, SPNEC signed a deed of absolute sale to acquire SP’s shares in Solar Philippines Tarlac Corp. and Solar Philippines Rooftop Corp., which together own over 100 MW of operational solar power plants and another over 50 MW under construction.
SPNEC will begin to recognize revenue from these two operational companies starting May 15 this year.
Under the agreement, SPNEC will acquire 100 percent of the shares of SP in 17 companies using the proceeds of SP’s subscription of 24.37 billion shares of SPNEC.
These companies are Solar Philippines Calatagan Corp., Solar Philippines Tarlac, Terra Solar Philippines, Solar Philippines Batangas Baseload, Solar Philippines Tarlac Baseload, Solar Philippines Central Luzon, Solar Philippines South Luzon, Solar Philippines Southern Tagalog Corp., Solar Philippines Eastern Corp., Solar Philippines Western, Solar Philippines Visayas, Solar Philippines Southern Mindanao Corp., Solar Philippines Batangas, Solar Philippines Retail Electricity, Laguna Solar Rooftop, and Solar Philippines Rooftop Corp.
This is premised on the approval of SPNEC’s increase in authorized capital stock.
Pangilinan-led Metro Pacific Investments Corp. (MPIC), SP, and SPNEC have signed an agreement granting MPIC or its affiliates the option to invest in almost 43 percent of SPNEC for P23.75 billion.
After the consolidation of the SP’s assets, SPNEC would own projects with close to 1 GW operating or under construction and a total pipeline of over 8 GW with the country’s largest contracted capacity of renewable energy projects.
This and MPIC’s investment are being done with the goal of making SPNEC the largest renewable energy company in the Philippines, said SP founder Leandro Leviste.