Negotiations between techpreneur Leandro Leviste’s Solar Philippines and an unnamed partner collapsed after failing to reach an agreement over large parcels of land in central Luzon.
Solar Philippines, parent company of SP NEW Energy Corp. (SPNEC), received a proposal from a company with which it has a joint venture for the purchase of its land.
Upon rejecting the proposal, Solar Philippines said several meetings between the two companies were held where they “disagreed on various reserved matters that require the approval of both parties under the shareholders’ agreement of the JV.”
If unresolved, Solar Philippines said this could result in the parties each submitting a bid, where the party bidding the higher price would buy out the other party.
“Solar Philippines is seeking an outcome that would responsibly maximize the value per share of SPNEC. As such, Solar Philippines is exploring various options to approach these developments for the best interest of shareholders of SPNEC, while also acting in the best interest of the JV, which Solar Philippines believes means both not accepting the proposal that it received and maintaining its position on these reserved matters,” the company said.
“Considering Solar Philippines’ respect for this company in its JV and the stage of these talks, Solar Philippines believes it prudent not to name the company, but is making this disclosure to apprise the public of discussions relating to land owned by SPNEC, given the large proportion of SPNEC’s value per share related to its landbank,” it added.
SP said it has already secured over 2,000 hectares of landbank for its solar developments, and is seeking the use for its land that would realize the highest value for the shareholders of SPNEC.