Meralco PowerGen Corp., a unit of power distributor Manila Electric Co., is buying an additional 11.6 percent stake in SP New Energy Corp. worth P7.5 billion from shares owned by Leandro L. Leviste.
In a statement, Solar Philippines said MGen purchased 5.8 billion shares from Leviste’s Solar Philippines Power Projects Holdings Inc.
This brings MGen and affiliates total investment in SPNEC to P27.9 billion, representing a 50.5 percent economic stake.
MGen wholly-owned subsidiary MGen Renewable Energy Inc. paid Solar Philippines P6.7 billion for the shares plus P800 million to be paid upon the entry of a new investor in Terra Solar Philippines Inc.
“Following the transactions, Solar Philippines retains a 14.7 billion share stake in SPNEC, representing 29.4 percent ownership,” it said.
Terra Solar, a wholly-owned subsidiary of SPNEC, is developing solar farms in Nueva Ecija and Bulacan with a proposed capacity of 3,500 megawatts solar and 4,000 kilowatt-hour battery storage.
When completed, the project will be the largest of its kind in the world, the company said.
Prior to this transaction, Meralco and Metro Pacific Investments Corp. owned 19.5 billion shares or a 38.9 percent economic share in the enterprise.
Meralco also previously acquired redeemable preferred shares that gave it majority voting power but no additional economic interest.
SPNEC shares closed at P1.29 apiece on Wednesday.
“The Terra Solar project remains on track for key milestones, with significant progress anticipated in the coming months,” said SPNEC president and CEO Emmanuel Rubio.
MGen and SPNEC chairman Manuel V. Pangilinan previously said MGen is keen to increase its stake in SPNEC.
“If it’s open, why not? It’s a good project. It owns 100 percent of Terra Solar for now. It’s the largest single-site solar facility in the world and the Philippines should be proud of that,” Pangilinan said.
Pangilinan’s remarks on increasing MGen’s stake in SPNEC followed an earlier comment that “a very long list of investors” looking to invest in Terra Solar.
