Metro Pacific Investments Corp., led by tycoon Manuel V. Pangilinan, has announced that it will invest P2 billion in SP New Energy Corp., a solar energy startup owned by businessman Leandro Leviste. The investment includes an option that could make Metro Pacific the largest shareholder in the company.
The company aims to raise funds to support its pipeline of solar power projects. Metro Pacific will also replace Leviste as chair of the company, while Leviste will remain its president and CEO.
The purchase of 1.6 billion common shares, or a 16% stake, will be made by Metro Pacific from Leviste’s holding company, Solar Philippines Power Project Holdings Inc. The shares are being bought at a 25% discount to the company’s closing price before the announcement of the transaction. The deal gives Metro Pacific direct exposure to the renewable energy sector, in addition to its indirect interests through its portfolio company, Manila Electric Co. (Meralco). An option to acquire more shares of SP New Energy after the latter completes an asset for share swap with Solar Philippines Power Project Holdings was also obtained by Metro Pacific, which allows it to acquire up to 43% of the company.
