MANILA, Philippines — Conglomerate Metro Pacific Investments Corp. is expanding its renewable energy footprint as it plans to buy sizable ownership of SP New Energy Corp.
In a disclosure sent to the Philippine Stock Exchange, the Pangilinan-led conglomerate said it entered into a sale and purchase agreement with SPNEC’s parent, Solar Philippines Power Project Holdings (SPH), to scoop up a 16% equity stake in the renewables firm. Effectively, MPIC is paying P2 billion to acquire 1.6 billion common shares in SPNEC.
SPNEC burst into the scene as one of the largest solar energy firms in recent years, helmed by Leandro Leviste.
The renewable energy company will use proceeds from the agreement to bankroll land investments in Nueva Ecija.
Once the transaction completes, MPIC chair and president Manuel V. Pangilinan will take over as SPNEC’s chairman of the board.
The disclosure indicated that this is merely the “first of several agreements.” Through this, MPIC could acquire a total of 19 billion common shares of SPNEC, with a target of making the company the largest renewables firm in the country.
As it is, the disclosure explained that SPNEC and its parent are set to complete an asset-for-share swap that would fatten SPH’s pipeline of 8 gigawatts of projects. That deal would then increase SPNEC’s outstanding shares to 34.4 billion out of an authorized capital stock of 50 billion common shares. Once that pushes through, MPIC could buy 43% of SPNEC’s total outstanding shares.
The conglomerate said that this equity purchase was part of its sustainability agenda, in a bid to expand its portfolio within the renewables sector.
The Philippines is looking to boost renewables in its current energy mix, which it hopes will hit 35% share by 2030. — Ramon Royandoyan