MERALCO PowerGen Corp. (MGen), a fully owned subsidiary of Manila Electric Co. (MERALCO), is set to increase its shareholding in SP New Energy Corp. (SPNEC) to 50.5% following a substantial acquisition of additional shares valued at Php 7.5 billion.
In a report by Business World, MGen said it is acquiring an additional 5.8 billion shares, or an 11.6% stake, in SPNEC from Solar Philippines Power Project Holdings, led by businessman Leandro Leviste.
This transaction elevates MGen and its affiliates’ total investment in SPNEC to Php 27.9 billion for 25.3 billion shares.
On September 3, MGen Renewable Energy, Inc., another wholly owned subsidiary of MGen, completed a payment of P6.7 billion to Solar Philippines. An additional payment of P0.8 billion is expected upon the completion of another investor’s entry into Terra Solar Philippines, Inc., another subsidiary of Solar Philippines.
Following this transaction, Solar Philippines will hold a 29.4% stake or 14.7 billion shares in SPNEC.
SPNEC, through Terra Solar Philippines, Inc., is developing a landmark Php 200-billion solar power project anticipated to be the world’s largest solar farm. Situated in Nueva Ecija and Bulacan, the project features a 3,500-megawatt solar power plant and a 4,000-megawatt-hour energy storage system. The project’s first phase is slated for completion by 2026, with the second phase to follow in 2027.
