MANILA -Greenergy Holdings Inc. is ramping up the capitalization of its renewable energy arm through a P480-million share subscription as it seeks to boost green projects.
In a disclosure on Tuesday, the listed company said its board of directors had approved its acquisition of 480 million shares in wholly-owned subsidiary Winsun Green Ventures Inc. (WGVI) for P1 apiece.
The stocks will be issued out of the authorized capital stock increase of WGVI from 20 million shares to 500 million shares for P1 each, which is still subject to the approval of the Securities and Exchange Commission.
Greenergy has paid P185 million upon subscription. The balance of P295 million will be paid within 60 calendar days or until Nov. 17.
“The transaction will strengthen the position of the company in renewable energy and sustainable community projects,” it said.
WGVI, incorporated in June 2012, is involved in the development and investment in power projects, including renewable energy. The energy arm entered into a one-year international distributorship agreement in 2020 with Chinese renewable energy company Hanergy Thin Film Power Asia Pacific Ltd.
The deal was not renewed after expiration as WGVI decided to “open up supply sourcing of its pending project from any solar panel suppliers which can offer the best technology at efficient cost, in light of the advancement in global solar technology and improved cost efficiency.”
Apart from renewable energy, Greenergy has also interest in waste-recycling projects, food and agriculture information technology, financial technology, biotechnology, green infrastructure and property development.
Greenergy saw its net loss attributable to parent company grow by more than 10 times to P9.82 million in the first half as revenues fell by 88 percent to P4.87 million.