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SP New Energy Corp. (SPNEC) has taken another step toward its planned merger with parent MGEN Renewable Energy Inc. (MGEN Renewables), approving a budget for the professional services needed to support the infusion of renewable energy assets into the listed company as the group pushes ahead with the expansion of the ₱200-billion MTerra Solar project.
In a disclosure, SPNEC said its board authorized funding for the engagement of professional advisers that will guide management through the proposed asset injection, a key component of the consolidation with MGEN Renewables. While the company did not disclose the amount, it said further financial details would be announced at a later stage.
The transaction is targeted for completion before the end of the year and is expected to transform SPNEC into the listed holding company for MGEN’s renewable energy portfolio. As part of the restructuring, SPNEC has applied with the Securities and Exchange Commission to change its corporate name to MGEN Renewable Energy Holdings Inc., which will serve as the surviving listed entity.
MGEN Renewables President and Chief Executive Officer Dennis Jordan earlier said the company aims to complete the asset infusion by the fourth quarter, setting the stage for a planned re-initial public offering in early 2027.
MTerra Solar Rollout
The merger is being synchronized with the continuing development of the MTerra Solar project in Bulacan and Nueva Ecija, which is expected to become one of the world’s largest integrated solar and battery energy storage facilities.
Once fully completed, the project will have 3,500 megawatt-peak (MWp) of solar generation capacity backed by a 4,500-megawatt-hour battery energy storage system, enough to supply electricity to around 2.4 million households.
Construction has continued to advance, with about 250 MW of solar capacity already exporting electricity to the grid.
MGen President and Chief Executive Officer Emmanuel Rubio said the project’s first phase has already been completed, with the company now targeting the start of the second phase by the first quarter of 2027.
The second phase is expected to add another 1,000 MWp of solar capacity. Rubio, however, emphasized that acquiring sufficient land remains a prerequisite before construction can proceed.
Earlier this year, MGen announced the successful grid synchronization and energization of the project’s initial phase, a major milestone that enables power delivery to the national grid. The company previously said it expects the first phase to export its full capacity by August.
Land Acquisition Continues
Supporting the project’s expansion, MGen affiliate Terra Nueva Inc. (TNI) has signed a conditional agreement to acquire an additional parcel of land in Nueva Ecija from listed SBS Philippines Corp
Under the agreement, SBS will sell a 49,966-square-meter agricultural property in Barangay Makabaklay, Gapan City for ₱24.98 million. The property will become part of the MTerra Solar development once all regulatory requirements have been satisfied.
The transaction remains subject to approval by the Department of Agrarian Reform for the property’s land-use conversion, along with other government permits and clearances.
SBS said the property had been held since 2004 as an investment asset and that the sale forms part of its strategy to dispose of non-core holdings. The company said proceeds from the transaction will be used for working capital and investments in its core businesses.
Payment will be made in cash upon execution of the contract to sell and after permits allowing entry for surveys, geotechnical investigations, and other development activities have been secured.
The Department of Energy has designated MTerra Solar as an Energy Project of National Significance, reflecting its strategic role in strengthening the country’s renewable energy capacity.
Expanding Renewable Energy Platform
The planned consolidation of SPNEC and MGEN Renewables is expected to strengthen MGen’s renewable energy platform as the company accelerates investments in large-scale clean energy projects.
MGen, the power generation arm of Manila Electric Co. (Meralco), has been expanding its portfolio across solar, thermal, and natural gas assets as electricity demand continues to grow and the country’s energy transition gathers pace.
MTerra Solar is being developed through a joint venture involving MGen, Solar Philippines, and UK-based investment firm Actis, which holds a 40-percent equity stake in the project.
The completion of the asset infusion, the planned corporate rebranding of SPNEC, and the continuing rollout of MTerra Solar are expected to position the merged company as MGen’s primary listed renewable energy vehicle ahead of its targeted re-initial public offering in 2027.
Source:
https://bworldonline.com/corporate/2026/06/26/759322/spnec-advances-mgen-unit-merger
https://business.inquirer.net/597053/mgen-eyes-q1-2027-start-for-mterra-solar-phase-2