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Leviste eyes entry of more strategic investors in SPNEC
Leviste eyes entry of more strategic investors in SPNEC, plans more private placements to bankroll projects
Leviste SPNECTechpreneur Leandro Leviste’s Solar Philippines Power Projects bared plans to take in more strategic investors following its recent transaction with the Ayala Group’s energy subsidiary.
Solar is looking to issue P2.7 billion worth of shares through a private placement to complete its asset for share swap deal with subsidiary SP New Energy Corporation (SPNEC).
In a disclosure to the Philippine Stock Exchange, Solar Power said the acquisition by ACEN Corporation (ACEN) of a five percent stake in SPNEC as partial pre-payment under a loan agreement between ACEN and SP is just the start of plans to widen SPNEC’s investor base.
READ: Ayala Group to own shares in Leviste’s SPNEC
“This is among several private placements that Solar Philippines has been planning, to broaden SP New Energy Corp. (SPNEC)’s shareholder base and enable its asset-for-share swap,” SPNEC said in a regulatory filing.
Solar Philippines on January 25 executed definitive agreements with ACEN to issue 500 million shares of SPNEC as pre-payment for part of a loan principal and payment of interest, other fees and in consideration of ACEN releasing its pledge over shares owned by Solar Philippines in SPNEC.
Solar Philippines affiliate Provincia Investments Corp. and ACEN signed on June 25, 2021 an omnibus loan and security agreement for a P1 billion loan with a repayment date of July 2, 2026, secured by a pledge over shares owned by Solar Philippines in SPNEC.
As part of its share swap, SPNEC will issue 24.37 billion shares in exchange for projects of Solar Philippines, in addition to its existing 10 billion shares.
This will result in SPNEC having 34.37 billion shares outstanding, which would require the public to own at least 6.87 billion shares to achieve a public float of at least 20 percent.
SPNEC said it would need to increase its public float by at least another 2.12 billion shares, assuming that 4.75 billion shares will be held by the public after the ACEN transaction.
Solar Philippines previously disclosed that it was exploring various options to support its project developments, including selling equity to partners at SPNEC.
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