SPNEC acquires 100% of Terra Solar for solar project

Energy firm SP New Energy Corporation (SPNEC) has acquired 100% of Prime Infrastructure, Inc.'s (Prime Infra) shares in Terra Solar Philippines to build the world's largest solar project. 

In a disclosure to the Philippine Stock Exchange, SPNEC said it has already executed a Deed of Absolute Sale to acquire the shares from Prime Infra. Together with SPNEC’s shares in TSPI acquired from Solar Philippines. 

The SPNEC made the announcement to acquire 100% of Terra Solar Philippines, Inc. after the Philippine Stock Exchange has lifted the suspension on the trading of the shares of SP New Energy Corporation last December 1, 2023.

This was after the firm reported that its public float had been raised to 20.02% to meet the minimum public ownership requirement of 20%. 

The disclosure noted that the public owns P6.88 billion SPNEC shares with non-public shares amounting to P27.49 billion shares. Substantial shareholders are Leandro Leviste’s Solar Philippines Power Project Holdings Inc. (69.79%) and Metro Pacific Investments Corporation (4.65%).

Pursuant to the Guidelines on Minimum Public Ownership Requirement for Initial and Backdoor Listing dated August 3, 2020, the SPNEC is required to have at least 20% public float. 

“In view of the abovementioned issuance, the Company’s public ownership level fell below the 20 % prescribed minimum percentage,” the PSE stated. 

Meanwhile, Manila Electric Co. signed a 20-year Power Supply Agreement with SPNEC’s Terra Solar Philippines for the supply of 850 megawatts (MW) of renewable energy to cover the power distributor’s mid-merit requirement starting 2026. 

The PSA indicated that a total of 600 MW of power supply will be available by February 26, 2026, while additional 250 MW will be delivered starting Feb 26, 2027 at a headline and levelized cost of electricity (LCOE) rate of P5.80 per kilowatt-hour.

This was based on assumptions at the time when the competitive challenge for the unsolicited proposal was launched. — BM, GMA Integrated News