The power generation arm of Manila Electric Co. (Meralco) has earmarked P158.95 million to secure a controlling interest in an affiliate that is building a solar farm in Bulacan province.
Meralco said in a disclosure that the acquisition by Meralco PowerGen Corp. (MGen) of an additional 20-percent stake in PowerSource First Bulacan Solar Inc. (PFBSI) was part of MGen’s efforts to build up a renewables portfolio of 1,000 megawatts over the next five to seven years.
Upon closing, the transaction will raise MGen’s interest in PFBSI to 60 percent from 40 percent through subsidiary MGen Renewable Energy Inc. or MGreen.
The additional shares, numbering 315,839, will be acquired from Sunseap Philippines Solar Holdings Pte Ltd.
“The acquisition is in line with MGen’s goal to diversify and increase investment in the renewable energy sector,” Meralco said.
The five-year-old company is building a 50-MW solar power facility in San Miguel, Bulacan. The P4.25-billion solar facility is expected to start commercial operations within this quarter.
The third shareholder of PFBSI is Powersource Energy Holdings Corp., which has a 36-percent interest. Sunseap will be left with a 4-percent interest.
“The acquisition increases the attributable and net sellable capacity of MGreen, which is in line with MGen’s goal of building a portfolio of 1,000-MW renewable energy projects in the next five to seven years,” Meralco said.