MPIC acquires 16% stake in SPNEC

MANILA, Philippines — Tycoon Manuel V. Pangilinan-led Metro Pacific Investments Corp. is investing P2 billion in Leandro Leviste’s SP Energy Corp. (SPNEC) , marking the group’s expansion into the renewable energy industry.

MPIC will acquire a 16 percent stake or 1.6 billion common shares of SPNEC from Solar Philippines for P1.25 per share, which was at a discount to the 52-week volume-weighed average price of the stock.

Pangilinan and Leviste signed the definitive agreement, which also gives MPIC the option to acquire up to 19 billion common shares of SPNEC, to make MPIC the single largest shareholder of the listed renewable energy company.

“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,” said Pangilinan, chairman of MPIC.

SPNEC and Solar Philippines are in the process of completing an asset-for-share swap that will pave the way for Solar Philippines’ pipeline of over eight GW of projects to be consolidated under SPNEC.

This will increase SPNEC’s outstanding shares to over 34.3 billion out of an authorized capital stock of 50 billion common shares, after which MPIC may acquire up to 43 percent of the total outstanding shares of SPNEC.

Solar Philippines will advance the proceeds to SPNEC to help fund Asia’s largest solar project in Nueva Ecija.

Upon the closing of the transaction, Pangilinan will become chairman of the board of SPNEC.

MPIC said its investment into SPNEC is guided by the vision of the Department of Energy (DOE) that 35 percent of the country’s energy come from renewable energy by 2030.

Leviste said the partnership with MPIC would unlock the potential of the company’s 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,” said Leviste.

UBS acted as the financial advisor on the transaction.

SPNEC is an integrated developer, owner, and operator of solar power projects while MPIC is a company with investments in power, toll roads, water, transportation, healthcare and real estate.

SPNEC closed at P1.74 per share yesterday, up 3.57 percent while MPIC rose to P3.82 per share, up 4.09 percent.