SPNEC board OKs budget for asset infusion

SP New Energy Corp. (SPNEC) is set for a major portfolio boost with its board approving a budget for the planned asset infusion with parent MGEN Renewable Energy Inc. (MGEN Renewables).

On Thursday, SPNEC said its board of directors had given the green light for a budget, although no figures on this were disclosed.

The company, founded by businessman and lawmaker Leandro Leviste, said the allocation would finance the engagement of professional advisors for the said move.

This planned merger is targeted for completion by the latter part of 2026, paving the way for a reinitial public offering (IPO).

“Towards the end of the year, we’re looking to inject assets from SPNEC and MGreen. And then it will become MGEN Renewables. It’s a space that is exciting for us,” MGreen president and CEO Dennis Jordan told reporters last May.

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

Once the consolidation of the assets is done, SPNEC would be rebranded to MGEN Renewable Energy Holdings Inc.

This fresh branding was already floated in January, with an analyst saying this could be the Manuel Pangilinan-led group’s attempt to pursue a backdoor listing or move away from the shadows of Leviste, who has been in the spotlight for his controversial exposés in the government. The Batangas representative was likewise linked to some cases due to failed solar projects.

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But SPNEC maintained that the proposed new branding was “part and parcel of the gradual rollout and implementation of the overall branding strategy of the Meralco PowerGen Corp. (MGEN) Group.”

MGEN serves as the power generation arm of Manila Electric Co.

Its president and CEO Manny Rubio earlier said that MGEN was just waiting for the “right timing,” particularly the activation of the first phase of the P200-billion MTerra Solar, to list the assets of MGreen.