SPNEC buys more shares in joint venture with Ayala

Listed Solar Philippines Nueva Ecija Corp. (SPNEC) has secured its board’s go signal to acquire more shares in its joint venture with Ayala Group’s ACEN Corp.

In a disclosure to the Philippine Stock Exchange, SPNEC said its board authorized them to acquire from ACEN 118,999 shares in Solar Philippines Central Luzon Corp. (SPCLC) and subscribe 375,000 shares in SPCLC.

The transaction was valued at P493,999.

“This is in support of SPNEC replacing SPPPHI (Solar Philippines Power Project Holdings, Inc.) as the shareholder of 50 percent minus one share in SPCLC,” the solar firm said.

SPCLC is the joint venture between Leandro Leviste-led Solar Philippines and ACEN for the development and construction of solar projects in Central Luzon. They are yet to disclose specific details on the planned projects since these are still in the exploratory stage.

In January last year, ACEN signed a deed of absolute sale to acquire 244,000 common shares from Solar Philippines for P1 apiece or a total of P244,000.

It also inked a subscription agreement covering 375,000 shares, also for P1 each or P375,000, which would be taken out of SPCLC’s unissued authorized capital stock.

“The acquisition and subscription will allow ACEN to have a significant ownership interest in SPCLC and is meant to implement the joint venture between ACEN and Solar Philippines for the development of solar power projects in the Philippines,” ACEN had said.

ACEN also said this would allow them to earn stable dividend income from operating the solar plants.

Around the same period, ACEN sealed preliminary binding agreements with Solar Philippines and its Provincia Investments Corp. for possible joint ventures to develop solar power projects in the country.

In relation to the binding accords, ACEN extended in June last year a term loan facility amounting to P1 billion to acquire various project sites for solar power projects.

The funding would be secured by a real estate mortgage over Provincia Investments and third-party mortgagors’ title to, or rights and interests over, real assets in favor of the ACEN.

It would also involve a mortgage and pledge over the shareholding of Solar Philippines in one of its fully-owned subsidiaries.