SP New Energy details P7.5-B Meralco buy-in
RENEWABLE energy firm SP New Energy Corp. (SPNEC) on Friday bared additional details with regard to Pangilinan-led Manila Electric Co.’s (Meralco) acquisition of a controlling interest for P7.5 billion.
In response to a query from the Philippine Stock Exchange, SPNEC confirmed that there was an exchangeable note facility and security agreement between MGen Renewable Energy Inc., buyer of the SPNEC shares, and Solar Philippines Power Project Holdings Inc. (Solar Philippines), the seller.
Under the agreement, two conditions were set for the “additional tranche of the loan amounting to P800 million.”
This is because Meralco subsidiary MGen was said to have paid Leandro Leviste’s Solar Philippines only P6.7 billion last September 3, in exchange for an additional 5.8 billion shares, leaving a balance of P800 million to complete the P7.5-billion deal.
SPNET told the bourse that the additional loan tranche of P800 million was conditioned on either “the occurrence of a follow-on offering or equity offering at a price per share equal to or greater than P1.45 each” or the possible sale of Terra Solar Philippines Inc. (TSPI) “at a price per share equal to or greater than the price implied by a 100 percent equity valuation of TSPI of P12 billion.”
SPNEC added that actions and/or approvals required under the relevant laws, rules and regulations include a “requirement of securing the approval of the Exchange after the listing of the shares to create a security interest in said shares.”
The buy-in basically gives the Meralco units a 50.5-percent economic interest or 25.3 billion shares in SPNEC, while Solar Philippines will continue to hold 14.7 billion shares, equivalent to a 29.4-percent stake.
Prior to the deals, Meralco and its parent holding firm, Metro Pacific Investments Corp., already owned 19.5 billion shares or a 38.9-percent economic share in SPNEC.
SPNEC shares were up 0.77 percent at P1.31 each on Friday while Meralco shares dipped 0.25 percent to P405 apiece.