Metro Pacific Investments Corp. (MPIC) has entered into a definitive agreement to invest P2 billion to acquire 1.6 billion common shares of SP New Energy Corporation (SPNEC) from SPNEC’s parent Solar Philippines Power Project Holdings, Inc. (“SPH”), with MPIC given the option to become the single largest shareholder of SPNEC. SPNEC is an integrated developer, owner, and operator of solar power projects listed in the Philippine Stock Exchange.
MPIC chairman and president Manuel V. Pangilinan, and SPH, represented by its president and CEO Leandro Leviste, signed the agreement for the purchase of secondary shares of SPNEC. SPH will advance the proceeds to SPNEC to fund its land investments in Nueva Ecija, where the company is developing what could be Asia’s largest solar project.
This is the first of several agreements through which the MPIC Group may acquire up to a total of about 19 billion common shares of SPNEC, subject to relevant approvals, with the goal of making SPNEC the largest renewable energy company in the Philippines.
“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,” says Pangilinan.
With the transaction closed, Pangilinan becomes SPNEC chairman of the board.
MPIC’s investment into SPNEC is guided by the vision of the Department of Energy (“DOE”) that 35 percent of the country’s energy come from renewable energy by 2030. SPNEC and SPH are completing an asset-for-share swap where SPH’s pipeline of over 8 GW of projects will be consolidated under SPNEC.
This would increase SPNEC’s outstanding shares from 10 billion to over 34.3 billion out of an authorized capital stock of 50 billion common shares, after which, the MPIC Group may acquire up to 43 percent of the total outstanding shares of SPNEC.
This would position MPIC as lead contributor to the country’s renewable energy goals.
SPNEC creates value through solar project development. MPIC contributes capital and investment expertise to work collaboratively with management teams and key stakeholders to build profitably growing infrastructure leaders.
“We have long seen a partnership with MPIC to be the key to unlock the potential of our project pipeline. We are humbled and grateful for this opportunity, and believe that SPNEC now has the final ingredients to realize the value of our developments for the benefit of all stakeholders,” said Leviste.
This transaction affirms MPIC’s resolve to be the largest catalyst for a sustainable Philippines. It is also aligned with the group’s efforts to contribute to the United Nations Sustainable Development Goals (UN SDGs), particularly Goal 7 or Affordable and Clean Energy, which aims to ensure access to affordable, reliable, sustainable and modern energy for all.
UBS acted as financial advisor of the transaction.
