PANGILINAN-LED Manila Electric Co. (Meralco) is increasing its stake in listed renewable energy company SP New Energy Corp. (SPNEC) to 50.5%.
Meralco PowerGen Corp. (MGen), a fully owned subsidiary of Meralco, is acquiring an additional 5.8 billion shares or 11.6% of SPNEC valued at P7.5 billion from Solar Philippines Power Project Holdings led by businessman Leandro Antonio L. Leviste.
With this transaction, MGen and its affiliates have invested a total of P27.9 billion in SPNEC, representing 25.3 billion shares, according to a statement from Solar Philippines on its Facebook page on Wednesday.
On Sept. 3, MGen Renewable Energy, Inc., a wholly owned subsidiary of MGen, paid P6.7 billion to Solar Philippines. An additional P0.8 billion will be paid upon the completion of another investor’s planned entry into Terra Solar Philippines, Inc., Solar Philippines added.
Following the transaction, Solar Philippines will hold a 29.4% stake or 14.7 billion shares in SPNEC.
SPNEC, through its subsidiary Terra Solar Philippines, Inc., is developing a P200-billion solar power project, which is expected to be the largest solar farm in the world. The project, located in Nueva Ecija and Bulacan, includes a 3,500-megawatt solar power plant and a 4,000-megawatt-hour energy storage system. The first phase is set for completion by 2026, with the second phase expected by 2027.
On Wednesday, SPNEC shares rose by 1.57% or two centavos, closing at P1.29 per share, while Meralco shares fell by 1.32% or P5.40, ending at P402.80 each.
Meralco’s majority owner, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave