Meralco to tap advisors for MGreen listing

INQUIRER FILE PHOTO

MANILA, Philippines – Meralco PowerGen Corp. (MGen) is set to engage with advisors to explore the possibility of a backdoor listing for its renewable energy unit, a move that could help supercharge its expansion.

MGen is the power generation arm of Manuel Pangilinan-led Manila Electric Co. (Meralco).

In a disclosure to the local bourse on Friday, SP New Energy Corp. (SPNEC)—the listed renewable energy vehicle of MGen—said the group’s board had given the green light to engage a pool of advisors “to assess and determine the feasibility and structure of such a transaction … ”

READ: MGen activates Nueva Ecija solar farm

This happens as the firm confirmed InsiderPH’s news report of MGen’s plan to list the renewable assets of MGen Renewable Energy Inc. (MGreen).

Potential IPO

“SPNEC confirms that its parent, Meralco PowerGen Corp. (MGen), is evaluating the potential of conducting an initial public offering (IPO) of MGreen, which may include the possibility of injecting assets to SPNEC,” it said in the filing.

SPNEC is leading the construction of a massive solar park in Luzon, which is designed to have 3,500 megawatts (MW) of total capacity and an equally massive 4,500 megawatt-hour battery energy storage system.

MGreen has a net sellable generating capacity of 344.5 MW of pure clean energy.

Juan Paolo Colet, managing director at China Bank Capital Corp., said pursuing this “makes sense … so that there is just one listed company housing the entire renewable energy business of MGen.”

“That would entail conducting a follow-on offering within a year from completion of the asset injection, so that could be an avenue for raising equity funding for MGreen’s projects,” Colet told the Inquirer.