Led by business tycoon Manuel V Pangilinan, the investment company could soon become the solar energy startup’s single largest shareholder
SP New Energy Corporation (SPNEC), the subsidiary of Philippines’ largest solar energy provider Solar Philippines Power Project Holdings founded by Gen.T honouree Leandro Leviste, has secured a P2 billion (US$36.8 million) investment from Manuel V Pangilinan’s Metro Pacific Investments Corporation (MPIC).
The deal gives MPIC a 16 percent stake—worth 1.6 billion common shares—in SPNEC. MPIC is acquiring the shares from Solar Philippines, which will reportedly use the new capital to fund investments for its upcoming 2,000-hectare solar farm venture in the province of Nueva Ecjia under Terra Solar Philippine, Solar Philippines’ renewable energy joint venture with Prime Infrastructure Capital.
MPIC has also obtained an option to acquire up to 43 percent of the company, which could make it the largest shareholder of SPNEC.
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MPIC also owns significant shares in Manila Electric Co (Meralco), which services much of Metro Manila’s electric consumption needs. In a statement, MPIC says it looks forward to complying with the Department of Energy’s target to raise renewable energy outputs to 35 percent by the year 2030. “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,” said chairman and president Pangilinan.
Solar Philippines was started by Leviste in 2013 with a US$100 million bank loan from the bank. It later found success in providing cost-competitive solar panels, which are in demand both locally in the Philippines and internationally.
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