Metro Pacific Investments Corp. is increasing its stake in renewable company SP New Energy Corp. to 43 percent for P24 billion.
SPNEC said in a stock exchange filing Monday its board approved an option agreement that would allow MPIC to acquire another 17.4 billion SPNEC shares including 10 billion primary shares for P12.5 billion and 7.4 billion secondary shares for P9.25 billion.
The option agreement is subject to SPNEC’s increase in authorized capital stock to P50 billion from P10 billion.
The parties signed the option agreement on May 5 after MPIC completed the purchase of 1.6 billion common shares, equivalent to 16-percent stake in SPNEC. MPIC acquired the shares from SPNEC’s parent firm Solar Philippines Power Project Holdings Inc.
“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 Pangilinan said during the signing of of the option agreement.
SPNEC said it plans to expedite the acquisition of shares of SPPPHI in various entities and funding of its developments, with the goal of making SPNEC the largest renewable energy company in the Philippines.
Its solar project in Nueva Ecija could be the largest in Asia.
“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,” SPNEC and SPPPHI chief executive Leandro Leviste said.
SPNEC is an integrated developer, owner and operator of solar power projects, while MPIC is an infrastructure conglomerate investments in power, toll roads, water, transportation, healthcare and real estate.