MGen Renewable Energy, Inc. (MGreen), a subsidiary of Meralco Powergen Corporation (MGen), is allocating Php 15.9 billion for an investment in SP New Energy Corporation (SPNEC).
This substantial investment contains a subscription of 15.7 billion common shares and 19.4 billion redeemable preferred voting shares within SPNEC.
MGreen agreed upon this investment along with SPNEC and its parent company, Solar Philippines Power Project Holdings, Inc.
MGreen and SPH reached an arrangement that they will employ SPNEC as their primary vehicle to build 3,500 megawatts (MW) of solar panels and 4,000 megawatt hours (MWh) of battery energy storage systems in Luzon.
“This will be one of the largest solar projects not just in Asia, but in the world… The Department of Energy’s vision is to have about 35% of the country’s energy come from renewable energy, and this is one of Meralco’s major contributions to this goal.” MERALCO CEO and Chairman Manuel V. Pangilinan said in a statement.
In order to approve this investment, SPNEC would need to submit its request for an increase in the authorized capital stock.
Meanwhile, the funds generated by MGreen will be directed towards expanding and enhancing its solar projects. Once the transaction is finalized, MGreen, holding both common and preferred voting shares, will become the majority shareholder of SPNEC, commanding a combined voting stake of 50.5%.
“We are humbled and grateful for this opportunity to build this renewable energy platform with Meralco. We look forward to bring together Meralco’s capabilities and our solar developments for the benefit of all stakeholders,” said SPNEC CEO Leandro Leviste.
MGen is a fully owned subsidiary of the Manila Electric Company (Meralco) and SPNEC is a comprehensive developer, proprietor, and manager of solar power ventures, listed on the Philippine Stock Exchange, primarily under SPH’s ownership.
