Meralco increases stake in SP New Energy for $133.32m

This involves 5.8 billion shares.

Manila Electric Co. (Meralco) is beefing up its stake in SP New Energy Corp. (SPNEC) with the acquisition of more shares for $133.32m (PHP7.5b).

In a regulatory filing, Meralco said its MGen Renewable Energy, Inc. (MGreen), a wholly-owned subsidiary of Meralco PowerGen Corporation, entered into an exchangeable note facility and security agreement with Solar Philippines Power Project Holdings, Inc. Under this agreement, MGreen extended a one year loan of $119.04m (PHP6.7b) exchangeable into 5.8 billion SPNEC shares at maturity.

The balance will be settled upon the entry of a new investor in SPNEC subsidiary Terra Solar Philippines Inc., according to reports.

Meralco does not expect this transaction to have a material impact on its business and operations.

The company earlier confirmed that it is planning to increase its stake in SPNEC, the developer behind the 3.5-gigawatt Terra Solar project, which is set to be the world's largest solar power plant.

$1 = PHP56.29