MVP’s solar bet

Tycoon Manuel V. Pangilinan is making a bigger bet on renewable energy by acquiring a 16 percent stake in Leandro Leviste’s SP New Energy Corp.

The market seems to welcome it, perhaps seeing it as a seal of good housekeeping of sorts that Pangilinan’s Metro Pacific Investments Corp. is spending P2 billion to acquire 1.6 billion common shares of SP New Energy Corp. (SPNEC) from SPNEC’s parent firm Solar Philippines.

Investors cheered the deal with SPNEC’s share prices rallying by 3.57 percent to P1.74 per share, while MPIC rose to P3.82 per share, up 4.09 percent on the day of the announcement.

MVP’s renewable energy thrust

Pangilinan, chairman of MPIC, said the thrust of pursuing renewable energy brings the MVP Group closer to fulfilling “its mission of creating long-term value for its stakeholders through responsible and sustainable investments.”

Indeed, the way I see it, this is the MVP Group making a bigger bet on renewable energy, especially solar.

More importantly, it’s also a move by MPIC to heed the growing demand of ESG investors. ESG refers to environment, social and corporate governance.

As we all know, there are now more and more green or ESG investors looking at companies who are investing in sustainability and a better future. As a consequence, banks, too, are no longer funding coal-fired power plants.

The MVP Group’s Meralco Powergen Corp., for instance, aims to build a diversified power generation portfolio with 3,000 MW capacity, including 1,000 MW in renewable energy.

In 2021, MGEN’s MGreen also commenced operations of its first solar power investment, a 50-MW solar plant in San Miguel, Bulacan.

Some said MVP seems to be investing into a distressed asset but the way I see it, MVP is actually investing into SPNEC to grow and expand the solar company. MPIC’s investment in SPNEC would actually create the largest renewable energy company in the Philippines.

This is no different from MPIC’s investment in Carmen’s Best, the famed ice cream maker.

MPIC and Carmen’s Best Group envision transforming the partnership into a fully integrated dairy business, serving local demand and eventually competing globally.

Thus, MVP’s record would show that he invests into companies to grow and expand them.

MPIC acquired the shares for P1.25 each, in line with comparable block trades for other companies.

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

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

I also believe MPIC is positioning itself as a major renewable energy player in the Philippines, guided by the vision of the Department of Energy that 35 percent of the country’s energy will come from renewable energy by 2030.

The young Leandro Leviste, son of Senator Loren Legarda, of course, has reasons to pop the champagne bottles.

With tycoons Enrique Razon and Pangilinan betting on SPNEC, his solar venture will grow faster than expected.

San Miguel Corp.’s social and environmental impact

Another conglomerate, San Miguel Corp. (SMC) is managing its social and environmental impact.

How do I know this? I recently met Cecile Ang, one scorching hot Monday morning in Tanza, Cavite.

Cecile is the daughter of tycoon Ramon Ang. She is low-key and prefers to stay away from the limelight but after spending one morning with her, where she met with fisherfolk communities affected by SMC’s planned airport project, I realized that her task in the conglomerate that her father leads is actually very important.

She is in charge of managing the social and environmental impacts of SMC in relation to the company’s New Manila International Airport (NMIA) project which the conglomerate is building in Bulacan.

That morning two weeks ago, she led the distribution of cash and food assistance for affected fisherfolk in Cavite towns, in compliance with performance standards set by the International Finance Corp. for the airport project.

In all, SMC rolled out P500 million in financial assistance for fisherfolk families residing in Rosario, Tanza, Naic and Ternate in Cavite.

The program covers some 5,000 fisherfolk families. They will each receive a monthly financial assistance of P5,000 until the company’s operation in the area is completed by 2024.

The families, identified through a validation process by local officials and leaders of local fishermen’s groups, are those affected by the ongoing operations of SMC contractor Royal Boskalis in the San Nicolas Shoal sand extraction area in Cavite.

The area is where Boskalis sources the sand for the Bulacan airport. The sand extraction has negatively affected the catch of fishermen.

Tycoon Ramon Ang said SMC is well aware of the effects of the ongoing operations of Boskalis.

That’s why we are taking all necessary measures to mitigate these. We’re committed to helping fisherfolk families in the area, and we’re very transparent about the project with them,” he said.

In her brief message during her town hall meeting with the different fisherfolk communities, Cecile explained that what SMC is doing is a project that will benefit Filipinos and help improve the way we travel.

We all know that development comes with a cost. But I am hopeful about this Bulacan airport and hope SMC remains committed to managing its social and environmental impact.

As I always say, I too fervently hope that we finally see better airports here in our country. Actually, we should have had world-class gateways yesterday.

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Email: [email protected]. Follow her on Twitter @eyesgonzales. Column archives at EyesWideOpen on FB.