Bilyonaryo Manny V. Pangilinan-led Metro Pacific Investments Corp. (MPIC) has secured the option to invest P23.75 billion in Solar Philippines Power Project Holdings, Inc. and SP New Energy Corp., a move that will make the infrastructure conglomerate the largest shareholder holding around 42.82 percent of SPNEC.
This follows MPIC’s earlier acquisition of 1.6 billion SPNEC shares for P2 billion in March.
Under the newly signed definitive agreements, MPIC or its affiliates have the option to acquire up to 17.4 billion SPNEC shares, comprising up to 10 billion primary shares for up to P12.5 billion and up to 7.4 billion secondary shares for up to P9.25 billion.
This is subject to SPNEC’s increase in authorized capital stock from 10 billion to 50 billion shares.
The move is part of MPIC’s strategy to expedite SPNEC’s acquisition of shares of SPH in various entities and provide funding for its developments, with the aim of making SPNEC the largest renewable energy company in the Philippines.
MPIC’s investment is aligned with the Department of Energy’s vision of generating 35 percent of the country’s energy from renewable sources by 2030. Company chairman and president Manuel V. Pangilinan believes that this partnership will create long-term value for stakeholders through responsible and sustainable investments.
One of SPNEC’s key projects in development is Asia’s largest solar project in Nueva Ecija.
SPNEC is an integrated developer, owner, and operator of solar power projects while MPIC has investments in power, toll roads, water, transportation, healthcare and real estate.
The strategic partnership between the two companies is expected to enhance the growth of renewable energy in the country, and pave the way for further developments in the sector.
The renewable energy sector has seen a surge in interest from investors in recent years, and this investment by MPIC underscores the growing importance of renewable energy in the Philippines’ energy mix.
Analysts said SPNEC’s innovative approach and ambitious goals make it a promising player in the renewable energy space, and the support from MPIC is expected to accelerate its growth and expansion in the years to come.