Meralco taken over SP New Energy Corp.

Meralco Powergen has completed the acquisition of a 50.5% stake in SP New Energy Corporation (SPNEC) via an investment of PHP 15.9 billion (US$ 286 million) in the Philippines.

MGEN Renewable Energy, Inc. (MGreen) has fulfilled the remaining payment of approximately PHP 8.89 billion (US$ 160 million) to finalize the acquisition. Post-transaction, MGreen will possess 15.7 billion common shares and 19.4 billion preferred shares in SPNEC, representing a total voting interest of 50.5%. MGreen functions as the renewable energy development branch of Meralco Powergen Corp., a wholly-owned subsidiary of Meralco.

In October 2023, MGreen entered into an investment agreement with SPNEC and Solar Philippines for the development of a solar and battery energy storage systems project. As per the agreement, SPNEC will be the primary entity for the development of 3,500 MW of solar panels and 4,000 MW of battery energy storage systems in Luzon. Meralco has estimated the project cost for the intended solar projects to be around PHP 200 billion (US$ 3.5 million).