MGEN Renewables pursuing P4.98-B share swap

MGEN Renewables Inc. (MGENR), formerly SP New Energy Corp. or SPNEC, is pushing for its planned secondary public offering after securing board approval for a P4.98-billion asset deal, a step closer to expanding its grip beyond the world’s largest solar farm.

The company said on Wednesday that its board of directors had given the go-ahead for the proposed share swap between MGENR and its parent firm MGEN Renewable Energy Inc. (MGreen).

The agreement entails the transfer of assets from MGreen to MGENR in exchange for newly issued shares reaching 3.1125 billion.

The value of the assets was estimated at P4.98 billion, with the shares pegged at P1.60 apiece.

MGENR said the figures were “within the valuation range determined by the independent valuation specialist engaged by the company.”

The share valuation was likewise 30.08 percent higher than the closing price of P1.23 per share as of Oct. 23.

“The share swap is expected to strengthen the company’s investment profile by expanding its revenue base through the addition of cash-generating operating assets, further establishing the Company as Meralco PowerGen Corp.’s primary listed renewable energy platform,” MGENR said.

This could also enhance “its attractiveness to institutional investors for future capital raising activities, including a potential re-initial public offering,” the company added.

MGEN Renewables is the renewable energy subsidiary of Meralco PowerGen Corp., the power generation arm of Pangilinan-led Manila Electric Co.

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MGENR is a new corporate name adopted after tycoon Manuel V. Pangilinan took over the firm from politician and businessman Leandro Leviste,

MGENR is leading the development of the mammoth MTerra Solar in Central Luzon. Designed to power 2.4 million homes, the P200-billion project is targeted for completion by 2027.

The planned merger of the two parties is targeted for completion by the latter part of 2026.

The new capital to be raised from the re-IPO would help fund the group’s launch of more renewable projects, the executive said.