SPNEC says share swap to be completed in 2022
SOLAR PHILIPPINES Nueva Ecija Corp. (SPNEC) said on Monday that it targets to complete its asset-for-share swap deal with its parent company, Solar Philippines Power Project Holdings, Inc. (SPPHI), by the end of this year, with its stock rights offering (SRO) expected to be completed in September.
“We aim to complete the private placements to increase the public float for the share swap by the end of 2022,” said Leandro L. Leviste, president and chief executive officer of SPNEC, in a media release.
SPNEC’s offering is set from Aug. 30 to Sept. 5. With the completion of these transactions, it aims to complete the development of 10 gigawatts (GW) of solar projects.
“Our job is for these offerings to cover the equity required to complete the development of 10 GW of solar projects, while retaining an average of at least 50% economic interest. SPNEC’s model is to create value through project development, investing for a smaller percentage of the cost that catalyzes larger investments, in the same way that we have in our earlier projects,” Mr. Leviste added.
SPPHI and SPNEC have signed the share-swap agreement for the issuance of around 24.37 billion shares at P2.50 apiece, in exchange for the shares of SPPHI in a portfolio of projects.
Along with SPNEC’s Nueva Ecija solar project, these projects would complete the company’s targeted 9 terawatt-hours per year of contracted energy, and potentially bring SPNEC’s contracted capacity to 8 GW, which are scheduled to commence operations between 2025 to 2026.
On Monday, shares in the company inched up by 0.56% or P0.01, to finish at P1.81 per share on the stock exchange. — Ashley Erika O. Jose
