MPIC to invest P2B in Leviste’s SP New Energy

Metro Pacific Investments Corp. (MPIC) is set to invest an initial P2 billion in SP New Energy Corp. (SPNEC), seeking to capitalize on the government’s shift to boost the share of renewable energy in the total mix by 2030.

In a filing to the local bourse, MPIC said it will acquire 1.6 billion common shares of SPNEC from Solar Philippines Power Project Holdings Inc. (SPH) at P1.25 per share, priced at a discount to the 52-week volume-weighted average price (VWAP).

The agreement, the first of several, was signed by SPH chief executive officer and president Leandro Leviste and MPIC chairman and president Manuel Pangilinan who will take over as SPNEC board chairman upon closing.

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

Further agreements would provide for MPIC to acquire up to a total of 19 billion common shares or 43% of the total outstanding shares of SPNEC upon the completion of an asset-for-share swap with SPH which would increase its shares to 34.3 billion.

“We are humbled and grateful for this opportunity, and believe that SPNEC now has the final ingredients to realize the value of our developments for the benefit of all stakeholders,” said Leviste, son of Senator Loren Legarda.

SPNEC went public in December 2021, focusing mainly as an integrated developer, owner, and operator of solar power projects. Its affiliate Solar Philippines Commercial Rooftop Projects Inc. has a service contract for the exclusive exploration and development of a property in Nueva Ecija.

Meanwhile, MPIC has interests in services and products, power, toll operations, water, healthcare, rail, and logistics among others, through its units Beacon Electric Asset Holdings Inc., Manila Electric Company, Metro Pacific Tollways Corp., Maynilad Water Holding Company Inc., and Metro Pacific Light Rail Corp.

Shares in MPIC were trading up P0.10 or 2.72% at P3.77 and those in SPNEC down P0.01 or 0.60% at P1.67 as of writing. —KG, GMA Integrated News