MGen Renewable Energy Inc. will invest close to P16 billion in SP New Energy Corp. , which is building a portfolio of 3,500 megawatts of solar panels and 4,000 MW hours of battery energy storage systems in Luzon.
To enable the investment, SPNEC will file its application for an increase in authorized capital stock. The fresh injection of capital by MGreen will fund the construction and expansion of its solar projects. Upon closing, MGreen’s common and preferred voting shares will make MGreen the controlling shareholder of SPNEC with a total voting interest of 50.5 percent.
MGreen has agreed with SPH to use SPNEC as the primary vehicle to develop the planned solar power projects and BESS. Transaction completion is subject to the satisfaction of certain conditions precedent, including the relevant regulatory approvals.