MGreen hikes stake in SPNEC

MANILA, Philippines — MGen Renewable Energy Inc. (MGreen), a wholly owned subsidiary of Meralco Powergen Corp., has raised its stake in integrated solar developer SP New Energy Corp. (SPNEC).

MGreen acquired 2.17 billion shares of SPNEC from Solar Philippines Power Project Holdings Inc. for P2.50 billion, representing 4.34 percent.

The acquisition further bolsters MGreen and its affiliates' controlling stake in SPNEC to 55.96 percent from the previous 50.55 percent.

MGreen previously acquired 15.70 billion common shares representing 31.4 percent of SPNEC’s total outstanding common shares for P15.9 billion, as well as 19.40 billion preferred shares, which brought MGreen’s total voting interest in the listed firm to 50.53 percent.

Metro Pacific Investments Corp. (MPIC), an affiliate of MGreen, in May last year made an initial purchase from Solar Philippines of 1.60 billion shares of SPNEC for P2 billion.

Together, these acquisitions amounting to P20.20 billion have allowed MGreen and its affiliates to own 19.473 billion common shares of SPNEC, or 38.89 percent of the total outstanding common shares of the company.

Along with its redeemable preferred voting shares, these acquisitions bring the total voting interest of MGreen and its affiliates to 55.96 percent in SPNEC.

MGreen is a wholly owned subsidiary of Meralco Powergen Corp. which, in turn, is a wholly owned subsidiary of Meralco, whose largest shareholder is MPIC.

Prior to the change in control, SPNEC was majority owned by Solar Philippines, which is owned by Leandro Leviste.

Solar Philippines continues to own 18.993 billion shares of SPNEC, with other shareholders and the public owning the remaining shares.

SPNEC is currently chaired by Manuel V. Pangilinan, while Leviste is vice chairman.

Pangilinan was also appointed as the company’s president and CEO.

SPNEC, through 100 percent-owned subsidiary Terra Solar Philippines Inc., is currently building the world’s largest solar project, which it is eyeing to complete by 2027.

The P200-billion Terra solar development in Nueva Ecija and Bulacan, which will consist of 3,500 megawatts (MW) of solar panels and 4,000 megawatt-hours of battery storage, would be completed in two phases.

The first phase, with a target capacity of 2,500 MW, is eyed for completion by 2026, while the second phase, with a capacity of 1,000 MW, will be finished by 2027.

The Terra solar project, which will cover approximately 3,500 hectares, is expected to be larger than India’s Bhadla Solar Park and China’s Golmud Solar Park, currently the world’s largest solar farms at over 2.2 gigawatts.