SP New Energy Corp. (SPNEC) has acquired the stake held by its partner in Terra Solar Philippines, Inc. for P6 billion, giving the listed firm full ownership of the entity that plans to build a massive solar farm.
In a stock exchange disclosure on Tuesday, the Leviste-led energy company said it had executed a deed of absolute sale on Monday to acquire the entire stake of Prime Infrastructure, Inc. or Prime Infra in Terra Solar.
SPNEC said that along with its previously acquired shares in Terra Solar, it is now the beneficial owner of 100% of the target company.
Established in 2020, Terra Solar is a 50-50 joint venture between Prime Infra and Solar Philippines Power Project Holdings, Inc., the parent firm of SPNEC. It is developing a 3,500-megawatt (MW) solar power plant and a 4,000-MW-hour energy storage system.
SPNEC previously said it had secured more than 3,000 hectares for its projects, primarily in Nueva Ecija and Bulacan, most of which have already been converted to industrial use.
The company’s development projects are supported by an agreement signed between MGen Renewable Energy, Inc. or MGreen, Solar Philippines, and SPNEC in October this year.
MGreen invested P15.9 billion in SPNEC, Manila Electric Co. (Meralco) previously said.
MGreen is the renewable energy development arm of Meralco Powergen Corp. (MGen), a wholly owned subsidiary of Meralco. SPNEC is currently majority-owned by Solar Philippines.
Upon closing, MGreen will own 15.9 billion common shares and 19.4 billion preferred shares of SPNEC, translating to a total voting interest of 50.5%.
Meralco has estimated the project cost of the solar projects that the parties intend to pursue to reach P200 billion.
In the third quarter, SPNEC registered an attributable net loss of P49.73 million, wider than the P15.51 million in the same quarter last year.
Its gross revenues stood at P269.62 million while gross expenses were at P123.15 million.
Sought for comment, China Bank Capital Corp. Managing Director Juan Paolo E. Colet said that the acquisition effectively puts Meralco in “the driver’s seat of Terra Solar.”
“This will give the company access to Meralco’s financial resources and project execution expertise, which would help accelerate Terra Solar’s development of the country’s largest solar power facility,” Mr. Colet said in a Viber message.
Last week, SPNEC announced that its board of directors had approved the appointment of Rochel Donato R. Gloria as treasurer and chief finance officer, and Alicia G. Brion as head of controllership effective on Nov. 30.
Mr. Gloria also serves as the finance chief of MGen, and Global Business Power Corp. (GBP), a wholly owned subsidiary of MGen.
Ms. Brion serves as the first vice-president and controller of MGen and first vice-president and controller of GBP. — Sheldeen Joy Talavera