SP New Energy Corp. is preparing to submit the plan to increase its public ownership to at least 20 percent as compliance to requirements set by the Philippine Stock Exchange.
Trading of SPNEC’s shares were suspended on 3 June when its free float level came down to 13.82 percent. Its share price closed at P1.46 apiece on 2 June.
The board of SPNEC last week approved the amendment of its articles of incorporation to reflect higher authorized capital stock of 75 billion shares consisting of 25 billion preferred and 50 billion common shares.
It set a special stockholders’ meeting on 4 December to approve the change and conduct a follow-on offering to raise funds to support its expansion and boost its public ownership. The increase accommodates the entry of MGen Renewable Energy Inc., the renewable energy development arm of Meralco Powergen Corp., as majority shareholder.
Mgen will invest P15.9 billion by subscribing to 15.7 billion common shares and 19.4 billion redeemable preferred voting shares in SPNEC.
MGen is a wholly-owned subsidiary of the Manila Electric Co., the country’s largest private sector electric distribution utility company.
The 15.7 billion common shares reflect total subscription price of P15.7 billion equal to 31.35 percent of the issued and outstanding common shares of SPNEC. The 19.4 billion redeemable preferred voting shares reflect a subscription price of P194.04 million but does not earn dividends.
“Upon closing, the 15.7 billion common shares and 19.4 billion redeemable preferred voting shares will make MGreen the controlling shareholder with a total voting interest of 50.5 percent,” SPNEC said.
“The issuance of these shares would come from an increase in authorized capital stock and fund the construction and expansion of the company’s solar projects, including a planned 3.5 GW of solar and 4 GWh of battery storage,” the company said.
UBS acted as financial advisor. SyCip Salazar Hernandez and Gatmaitan and Gulapa Law acted as legal advisors to both Meralco and MGreen.
King Spalding and Picazo Law acted as legal advisors to Solar Philippines Power Project Holdings Inc. and SPNEC.
