MGen Renewable Energy Inc. (MGreen), a unit of the Manila Electric Co., on Monday completed its P15.9 billion investment in SP New Energy Corp. (SPNEC), taking a controlling stake at the solar company.
Only late last week, SPNEC received the approval of the Securities and Exchange Commission to amend its articles of incorporation and increase its authorized capital stock to 75 billion common shares and 25 billion preferred shares from 50 billion common shares.
The 15.7 billion common and 19.4 billion preferred shares were then issued to MGreen.
“With the SEC’s approval and the issuance of the shares, the final conditions for MGreen’s investment have now been satisfied and MGreen is now the controlling shareholder of SPNEC with a total voting interest of 50.5 percent,” the company said.
The increase in authorized capital stock also enables SPNEC to pursue further fundraising exercises, including a possible follow-on offering, the company said.
Proceeds from MGreen’s investment and other fundraising exercises will help fund the P200 billion Terra solar project.
The company previously said the project will be funded by a combination of capital infusion that includes the MGreen investment and by project financing.
The project generates 3,500 megawatts from solar panels now 100 percent owned by SPNEC.
SPNEC’s board of directors recently approved the election of businessman Manuel V. Pangilinan as its chairman, president and chief executive officers while Leandro Antonio L. Leviste is vice chairman.
The company also appointed Amanda Roselle A. Bengson as director, chief compliance officer, and corporate secretary; Pedro Emilio O. Roxas as independent director; Dominador M. Camu Jr. as chief operating officer; Anthony Matthew N. Co as assistant treasurer; and Jo Marianni P. Ocampo as assistant corporate secretary.
MGreen is the renewable energy development arm of Meralco Powergen Corp., a wholly-owned Meralco subsidiary.
SPNEC looks to develop the 3.5 gigawatt solar and 4.5 gigawatt-hour battery project in Nueva Ecija touted as the world’s largest single contracted solar project.
SPNEC was majority-owned by Leviste’s Solar Philippines prior to MGreen’s entry.
