MGen Renewable Energy Inc. (MGreen), a subsidiary of Manila Electric Company (Meralco), has successfully concluded its P15.9 billion acquisition, securing a controlling stake in SP New Energy Corporation (SPNEC). This milestone follows the Securities and Exchange Commission’s approval of SPNEC’s increased authorized capital stock.
MGreen obtained 15.7 billion common shares and 19.4 billion preferred shares through a capital hike, satisfying the final conditions for its investment. With a 50.5 per cent total voting interest, MGreen is now the dominant shareholder in SPNEC.
The augmented capital also positions SPNEC for additional fundraising initiatives, including a follow-on offering. The funds will support the ambitious P200 billion Terra Solar project, touted as the “world’s largest solar project,” with 3500 MW of solar panels and 4000 MWh.
The project, now 100 per cent owned by SPNEC, will be funded through a combination of capital infusion and project financing. The recent leadership change, with Manuel V. Pangilinan assuming key roles, accompanied MGreen’s balance payment for the acquisition.
Notably, SPNEC welcomed new appointees to its board and key positions, signalling a transformative phase for the renewable energy company.
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