MGreen strengthens Grip on SPNEC with P2.5 billion investment boost

MGen Renewable Energy Inc. (MGreen), a subsidiary of the Manila Electric Co. (Meralco), is ramping up its investment in SP New Energy Corp. (SPNEC) with an additional P2.5 billion capital infusion.

This move has significantly increased MGreen’s shares in the renewable energy company, underscoring its strategic push into the sustainable energy sector.

Last week, MGreen acquired an additional 2.17 billion shares from Solar Philippines Power Project Holdings Inc., which equates to a 4.34 percent stake in SPNEC. This follows a previous purchase by MGreen of 15.7 billion common shares, representing 31.4 percent of SPNEC’s total outstanding common shares.

With the recent acquisition of 19.40 billion preferred shares, MGreen’s total voting interest in SPNEC now stands at an influential 50.53 percent. This series of investments aligns with MGreen’s broader strategy to establish a strong presence in the renewable energy market.

In a related move, Metro Pacific Investments Corp. (MPIC), an affiliate of MGreen, also entered the scene in May 2023 by acquiring 1.60 billion shares of SPNEC for P2 billion from the same holding company.

These concerted efforts have resulted in MGreen and its affiliates amassing 19.473 billion common shares, or 38.89 percent of SPNEC’s total outstanding common shares, amounting to a total investment of P20.20 billion.

The combined stakes, including redeemable preferred voting shares, have tipped the scales of control, with MGreen and its affiliates now holding a total voting interest of 55.96 percent in SPNEC.

As a result, SPNEC is now effectively under the control of MGreen, further consolidated by Meralco Powergen Corp., and ultimately, Meralco, which is predominantly owned by MPIC.

Despite these changes, Solar Philippines maintains a substantial shareholding with 18,993,622,998 billion shares of SPNEC. The remaining shares are distributed among other shareholders and the public.

The recent sale of shares to MGreen is poised to inject SPNEC with the necessary capital to advance its P200-billion Terra Solar project, which has been heralded as the “world’s largest solar project.”

SPNEC’s ambitious plan involves the creation of a massive solar power generation capacity of 3500 megawatts coupled with 4000 megawatt-hours of energy storage.

This bold venture by MGreen represents a significant milestone in the Philippines’ transition to renewable energy sources, promising to play a pivotal role in the country’s energy sustainability and independence.