Listed solar developer SP New Energy Corporation (SPNEC) has confirmed that preparations are underway for its planned merger with MGEN Renewable Energy, Inc., (MGEN Renewables) with the transaction targeted for completion in the fourth quarter of 2026 and a planned re-IPO eyed by March 2027.

In a disclosure to the Philippine Stock Exchange dated May 25, SPNEC clarified details following reports regarding the timeline and status of the proposed transaction.

The company said both firms have already approved the appointment of a third-party consultant that will conduct the valuation for the transaction.

“The consultant has already commenced work and is currently firming up the valuation parameters for both MGEN Renewables and SPNEC in relation to the proposed transaction,” SPNEC said.

SPNEC also confirmed that the planned asset injection is expected to be completed by the fourth quarter of 2026, subject to the completion of related steps, including the ongoing valuation process and required approvals.

The company added that the transaction is expected to be followed by a planned re-initial public offering in March 2027, timed with the target completion of Phase 2 of the MTerra Solar project.

SPNEC clarified, however, that there are “no specific operational milestones being imposed as pre-conditions to the transaction” aside from management’s focus on delivering the committed 850-megawatt capacity to Manila Electric Company under their power supply agreement.

The clarification comes as the planned consolidation between MGEN Renewables and SPNEC continues to draw attention from investors and industry stakeholders, given the scale of the MTerra Solar development and its potential impact on the country’s renewable energy pipeline and capital markets activity.

SPNEC also said the plans remain “preparatory” and currently have no impact on the company’s financial condition, public ownership, or business operations.

SPNEC was originally established by solar entrepreneur Leandro Leviste as a renewable energy platform focused on utility-scale solar developments. Leviste has since exited the company after MGEN acquired a controlling stake in SPNEC in 2024.

What could the planned MGEN Renewables-SPNEC consolidation mean for the Philippine renewable energy sector and future clean energy investments? Join the discussion.

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