METRO Pacific Investments Corp. (MPIC) has agreed to invest P2 billion to acquire 1.6 billion common shares or a 16-percent stake in SP New Energy Corp. (SPNEC) from Solar Philippines Power Project Holdings Inc. (SPH).

This will be the first of several agreements through which the conglomerate may acquire up to a total of about 19 billion common shares of SP New Energy with the goal of making MPIC the largest renewable energy company in the Philippines.

“Our thrust of pursuing renewable energy brings the MVP Group one step closer to fulfilling our mission of creating long-term value for our stakeholders through responsible and sustainable investments,” Manuel Pangilinan, Metro Pacific chairman and president, said.

SPNEC and SPH are currently completing an asset-for-share swap where SPH’s pipeline of over 8 gigawatts (GW) of projects will be merged under SP New Energy.

It will increase SP New Energy’s outstanding shares from 10.0 billion to over 34.3 billion out of an authorized capital stock of 50 billion common shares. Metro Pacific may then acquire up to 43 percent of the total outstanding shares of SPNEC.

The shares were valued at P1.25 per share, considering the value of SPNEC’s assets and the intangible value of the company’s projects being developed.

UBS acted as the financial advisor on the transaction.