MGEN Renewables, Inc. (MGENR, formerly SP New Energy Corp.) said Wednesday that its board had approved a nearly P5-billion share swap transaction with MGEN Renewable Energy, Inc. (MGreen) to strengthen its investment profile for a possible re-initial public offering or re-IPO.
In a disclosure, the company said MGreen would transfer its shareholdings in Greenergy for Global Inc., Greentech Solar Energy Inc., CACI Power Corp., Nuevo Solar Energy Corp., and PowerSource First Bulacan Solar Inc. to MGENR for newly issued MGENR shares.
MGreen is the renewable energy arm of Meralco PowerGen Corp. (MGEN), the power generation arm of Manila Electric Co.
The company said the proposed valuation of the shares to be swapped was P4.98 billion. In exchange for these shares, MGENR will issue approximately 3.1125 billion of its shares, valued at P1.60 apiece, to MGreen.
It said the prices were within the valuation range determined by an independent valuation specialist.
MGENR said the share swap was expected to strengthen its investment profile by expanding its revenue base through the addition of cash-generating operating assets, thereby helping enhance its attractiveness to institutional investors for future capital-raising activities, including a potential re-IPO.
The deal would also further establish MGENR as MGEN’s primary listed renewable energy platform, it said.
On Tuesday, SP New Energy Corp. announced that the Securities and Exchange Commission (SEC) had approved the change in its company name to MGEN Renewables, Inc. (MGENR), although PSE approval of the stock symbol change from SPNEC to MGENR remains pending.
In the same disclosure, MGENR said that its wholly owned subsidiary, Terra Nueva, Inc. (TNI), will subscribe for common and Class “A” preferred shares of Terra Solar Philippines, Inc. (TSPI), a majority owned subsidiary of the company, at a combined subscription price of up to P7.815 billion.
The company noted, however, that TNI’s subscription will require the consent of TSPI’s lenders and Actis, the company’s partner in TSPI.
While waiting for the required consents, MGENR said it was given the authority to purchase additional TSPI shares and to infuse additional funds into TSPI of up to P1.8825 billion, if deemed necessary.
SPNEC/MGENR shares surged P0.14, or 11.2 percent, to close at P1.39 apiece on Wednesday.
