Shareholders of Solar Philippines Nueva Ecija Corp. on Monday approved the increase in the company’s authorized capital stock by 400 percent to 50 billion shares to support aggressive expansion.
SPNEC said in a disclosure to the stock exchange shareholders during the special stockholders meeting also approved the company’s share swap deal with parent Solar Philippines.
It said that from 50 billion new authorized capital stock of the company, SPNEC would issue 24.37 billion shares at P2.50 apiece to Solar Philippines. In exchange, SPNEC will acquire over 20 companies owned by Solar Philippines.
These include solar farms in Batangas, Tarlac and Cavite with a combined 163 megawatt in operations and 240 MW for expansion, from which Solar Philippines sold shares at project valuations of over P20 million per MW.
SPNEC said earlier it aimed to complete the development of 10,000 MW of solar projects via acquisitions and joint venture partnerships.
It also targets to create P15 million per MW of value from 10 GW of developments by 2025. To achieve these goals, SPNEC said it would focus on being a project developer and not an independent power producer.
“We believe the greatest challenge for solar in the Philippines is neither a lack of demand nor a surplus of projects, but rather, the challenge of consolidating land and permits that has resulted in a shortage of developed solar sites. This calls for us to maximize our attention devoted to the development of sites to create our target P 15 million per MW of value, while working with other IPP’s on financing and construction once the sites are shovel-ready,” SPNEC said.
It also seeks to raise at least P10 billion from stock rights offering and possible private placement and follow-on offering.
“While the terms of these offerings are typically determined later in the process, suffice it to say, the pricing must be attractive for the company to be able to raise its required capital,” SPNEC said.
