Leviste's SPPPHI sells P3 billion SPNEC stake, reduces ownership
Leandro Leviste's Solar Philippines Power Project Holdings Inc. (SPPPHI) divested P3 billion in SP New Energy Corp. (SPNEC) shares. This move cuts SPPPHI's stake to 11.51 percent, lessening Leviste's influence in the firm he founded.
Leviste Holding Divests Further SPNEC Shares
Leandro Leviste's Solar Philippines Power Project Holdings Inc. (SPPPHI) sold P3 billion worth of shares in SP New Energy Corp. (SPNEC). A regulatory filing shows SPPPHI divested 2.4 billion SPNEC shares at P1.25 each. This transaction reduced SPPPHI's holding in SPNEC from 16.3 percent to 11.51 percent. The unnamed buyer's identity remains undisclosed.
Manuel V. Pangilinan's Meralco Group took control of SPNEC in 2023. Pangilinan previously confirmed Leviste was negotiating to sell his remaining SPNEC shares to a foreign investor.
SPNEC Approves Land Acquisitions from SPPPHI Subsidiaries
SPNEC's board of directors approved land acquisitions from Provincia Investments Corp. and JJPNM Agro Industrial Corp. Both corporations are subsidiaries of SPPPHI. Financial details of these planned land deals were not immediately available. These acquisitions may consolidate land assets crucial for SPNEC's renewable energy projects.
This move occurs as Leviste's overall influence in SPNEC continues to weaken, following the Meralco Group's 2023 majority stake acquisition.
Regulatory Penalties and Legal Challenges Persist
SPPPHI faced significant regulatory action in January. The Department of Energy terminated 33 of its renewable energy service contracts. These contracts, with a combined capacity exceeding 11,400 megawatts, were cancelled due to SPPPHI's failure to deliver on commitments. The Department of Energy imposed a P24-billion penalty on SPPPHI for these terminated agreements. Leviste resigned as a director of SPNEC and its unit Terra Solar Philippines Inc. amid these controversies.
Leviste and his mother, Senator Loren Legarda, currently face plunder and graft complaints. These allegations concern his solar company's failure to deliver power under its congressional franchise. Solar Para Sa Bayan Corp., another firm founded by Leviste, received this franchise in 2019. It aimed to build and operate distributed energy resources and microgrids in remote areas.
The ongoing share divestment and legal issues suggest a strategic shift for Leviste. Investors will watch how these developments affect SPNEC's project execution and governance under the Meralco Group.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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