Metro Pacific Investments Corporation (MPIC) will acquire 1.6 billion common shares of SP New Energy Corporation (SPNEC) worth Php 2 billion.
The purchase of secondary shares of SPNEC gives MPIC the option to become the single largest shareholder of the solar company.
SPNEC parent Solar Philippines Power Project Holdings Inc. (SPH) said that it will advance the proceeds to SPNEC to help fund its land investments in its solar power project in Nueva Ecija,
“Our thrust of pursuing renewable energy brings the MVP Group one step closer to fulfilling our mission of creating long-term value for our stakeholders through responsible and sustainable investments,” MPIC chairman and president Manuel V. Pangilinan said in a statement.
The acquisition is the first of several agreements between MPIC and SPNEC. MPIC is looking to acquire around Php 19 billion common shares of SPNEC, with the goal of making SPNEC the largest renewable energy company in the Philippines.
SPNEC and SPH are currently in the process of completing their asset-for-share swap where SPH’s eight gigawatts of projects in the pipeline will be consolidated under SPNEC. After which, MPIC may acquire up to 43% of SPNEC’s total outstanding shares.
“We have long seen a partnership with MPIC to be the key to unlock the potential of our project pipeline. We are humbled and grateful for this opportunity, and believe that SPNEC now has the final ingredients to realize the value of our developments for the benefit of all stakeholders,” SPH president and CEO Leandro Leviste said.