MGen Renewable Energy Boosts Stake In SP New Energy Corp., Securing 55.96% Control

MGen Renewable Energy Inc. (MGreen), a fully-owned subsidiary of Meralco Powergen Corp., has increased its ownership stake in integrated solar developer SP New Energy Corp. (SPNEC).

MGreen purchased 2.17 billion shares of SPNEC from Solar Philippines Power Project Holdings Inc. for P2.50 billion, equivalent to a 4.34 per cent stake.

This acquisition strengthens MGreen and its affiliated companies’ controlling interest in SPNEC to 55.96 per cent, up from the previous 50.55 per cent.

Earlier, MGreen had acquired 15.70 billion common shares, constituting 31.4 per cent of SPNEC’s total outstanding common shares, for P15.9 billion.

Additionally, they acquired 19.40 billion preferred shares, bringing MGreen’s total voting interest in the listed firm to 50.53 per cent. In May of the previous year, Metro Pacific Investments Corp. (MPIC), an affiliate of MGreen, initiated a purchase of 1.60 billion shares of SPNEC from Solar Philippines for P2 billion.

These cumulative acquisitions, amounting to P20.20 billion, have enabled MGreen and its affiliates to possess 19.473 billion common shares of SPNEC, equivalent to 38.89 per cent of the total outstanding common shares.

When factoring in redeemable preferred voting shares, the total voting interest of MGreen and its affiliates in SPNEC now stands at 55.96 per cent.

MGreen operates as a wholly-owned subsidiary of Meralco Powergen Corp., which, in turn, is wholly owned by Meralco, with its largest shareholder being MPIC.

Before this change in control, SPNEC was predominantly owned by Solar Philippines, owned by Leandro Leviste. Solar Philippines retains ownership of 18.993 billion shares in SPNEC, while other shareholders and the public hold the remaining shares.