Manila Electric Co. (Meralco) and its subsidiaries have set their sights on finalizing the acquisition of a 50.5 percent stake in SP New Energy Corporation (SPNEC) by the end of this year.
The goal is to complete this process to coincide with the energization of the first 600 MW out of the planned 850 MW, expected sometime in the first quarter of 2026, according to Meralco chairman Manuel V. Pangilinan.
The closing of the deal will pave the way for SPNEC to develop 3,500 Megawatts of solar panels and 4,000 megawatt-hours of battery energy storage systems that will cost about P200 billion in investment.
MGen Renewable Energy, Inc. (MGreen), the renewable energy development arm of Meralco Powergen Corporation (MGen), entered into an agreement with SPNEC and its parent company, Solar Philippines Power Project Holdings, Inc. (SPH).
The agreement involves an investment of P15.9 billion to acquire 15.7 billion common shares and 19.4 billion redeemable preferred voting shares in SPNEC.
To facilitate this investment, SPNEC will initiate the process of increasing its authorized capital stock. The additional capital injected by MGreen will be directed toward funding the construction and expansion of solar projects.
Upon the completion of the transaction, MGreen will become the controlling shareholder of SPNEC, with a total voting interest of 50.5%. MGreen has also aligned with SPH to utilize SPNEC as the primary vehicle for developing 3,500 Megawatts of solar panels and 4,000 Megawatt-hours of battery energy storage systems in Luzon.
The finalization of this transaction is contingent upon the satisfaction of specific conditions precedent, including the necessary regulatory approvals.
UBS has served as the financial advisor in this transaction, while SyCip Salazar Hernandez and Gatmaitan and Gulapa Law have acted as legal advisors to both Meralco and MGreen. King & Spalding and Picazo Law have provided legal counsel to SPH and SPNEC.