SPNEC acquires 100% of Terra Solar to build world’s largest solar project

SOLAR RISING. Workers install solar panels in one of the sites of a solar power facility being built by Enrique Razon Jr-owned Prime Infra subsidiary Solar Tanauan Corp and which has made significant progress since groundbreaking just last April. The project aims to power more than 84,000 households and displace more than 100,000 tons of coal per year. CONTRIBUTED PHOTO

MANILA, Philippines -SP New Energy Corp. (SPNEC) has acquired 100 percent of the shares of Prime Infrastructure Inc. (Prime Infra) in Terra Solar Philippines Inc. for P6 billion.

In a disclosure to the Philippine Stock Exchange, SPNEC said it has already executed a deed of absolute sale to acquire the shares from Prime Infra. This deal grants SPNEC 100 percent ownership of Terra Solar.

Terra Solar was established in 2020 as a 50-50 joint venture between SPNEC parent Solar Philippines and Prime Infra to develop a 3.5-GW solar and 4-GWh battery storage project, which has been referred to as the world’s largest.

SPNEC’s developments were supported by the agreement signed by MGen Renewable Energy (MGreen), Solar Philippines and SPNEC on Oct 12, 2023 for a P15.9-billion investment. Upon closing, MGreen will own 15.7 billion common shares and 19.4 billion preferred shares of SPNEC, translating to a total voting interest of 50.5 percent.

MGreen is the renewable energy development arm of Meralco Powergen Corp, a wholly-owned subsidiary of  Manila Electric Co., the country’s largest private sector electric distribution utility company. SPNEC is currently majority-owned by Solar Philippines.

SPNEC made the announcement to acquire 100 percent of Terra Solar after the PSE lifted the suspension on the trading of shares of SPNEC last Dec 1 after its public float rose to 20.02 percent, meeting the 20 percent minimum public ownership requirement.

Trading of SPNEC shares was suspended on June 2 after its public ownership level fell below the prescribed 20 percent minimum as a result of a stock issuance under a deal with its parent firm.