MERALCO PowerGen Corp. (MGen) affiliate Terra Nueva Inc. (TNI) is set to acquire a parcel of land in Nueva Ecija that will become part of the P200-billion MTerra Solar project following a conditional sale agreement with listed SBS Philippines Corp.
In a disclosure on Thursday, SBS said it agreed to sell a 49,966-square-meter agricultural lot in Barangay Makabaklay, Gapan City to Terra Nueva for P24.98 million.
The property will be integrated into TNI’s MTerra Solar project, which has been recognized by the Department of Energy as an energy project of national significance.
MTerra is designed to have a capacity of 3,500 megawatts (MW) upon completion and comes with a 4,500 megawatt-hour (MWh) battery storage system.
The project is a joint venture led by MGen, a subsidiary of Manila Electric Co. (Meralco), together with Solar Philippines and UK-based investment firm Actis, which holds a 40-percent equity stake.
The transaction between MGen and SBS remains subject to several closing conditions, including approval by the Department of Agrarian Reform of the property’s land-use conversion and compliance with all relevant government clearances.
SBS said it acquired the property in 2004 as an investment asset and that its disposal was part of its portfolio realignment to sell off non-core assets.
Proceeds will be channeled for working capital and value-enhancing ventures on core business segments, SBS added.
Payment will be made in cash upon the signing of the contract to sell and the grant of permits allowing entry to the property for surveys, geotechnical investigation and other development activities, subject to applicable regulatory approvals.
SBS shares last traded at P3.20 each on June 22 while those of MGen’s ultimate parent, Meralco, added P1.00, or 0.17 percent, to close at P574 apiece on Thursday.
