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Batangas 1st District Rep. Leandro Leviste has further reduced his stake in SP New Energy Corp. (SPNEC), selling ₱3 billion worth of shares as he faces growing legal and regulatory scrutiny over his renewable energy ventures.
Solar Philippines Power Project Holdings Inc. (SPPPHI), Leviste’s investment vehicle, sold about 2.4 billion SPNEC common shares at ₱1.25 each, according to a disclosure to the Philippine Stock Exchange.
The transaction, completed on August 20, reduced SPPPHI’s ownership in the listed renewable energy developer to 11.51% from 16.30%, leaving the company with about 5.76 billion shares.
SPNEC did not identify the buyer.
The latest transaction marks another step in Leviste’s gradual exit from the solar company he founded, which is now controlled by the renewable energy arm of the Manuel V. Pangilinan-led Meralco group.
MGen Renewable Energy Inc. (MGreen), the renewable energy subsidiary of Meralco PowerGen Corp. (MGEN), holds a 57.33% controlling stake in SPNEC. Metro Pacific Investments Corp., also linked to Pangilinan, owns another 3.2%, while the remaining shares are held by minority investors.
Possible Exit
The sale came weeks after Pangilinan said Leviste was exploring the possibility of further reducing, or even completely selling, his remaining SPNEC stake.
Speaking to reporters after a Meralco press conference, Pangilinan said Leviste was in discussions with several potential buyers, although he stressed that the Meralco group was not involved in those negotiations.
“He’s still there, but I understand he’s talking to several people about disposing his shares — some or all of his shares,” Pangilinan said at the time.
Reports have also indicated that Leviste had been in talks with a foreign entity regarding the possible sale of his remaining holdings.
Leviste has already stepped down as a director of SPNEC and Terra Solar Philippines Inc., the company behind the massive MTerra Solar project, amid the restructuring of his renewable energy businesses.
Meralco took control of SPNEC following a series of transactions in which Leviste sold billions of pesos worth of shares to the Pangilinan-led group.
The company has since become a major vehicle for the development of large-scale solar projects, with MTerra Solar serving as its flagship development.
Projects And Investments
SPNEC’s latest disclosure also showed that its board approved several transactions and development expenditures.
Among them was the acquisition of land by Terra Nueva Inc., a wholly owned SPNEC subsidiary, from Provincia Investments Corp. and JJPNM Agro Industrial Corp. Both companies are subsidiaries of SPPPHI. The disclosure did not state the value of the land acquisition.
The SPNEC board also approved budgets for the development of the Sta. Rosa solar project and capital expenditures for the SP Tarlac plant, although the amounts were not disclosed.
Separately, MGEN has approved a budget for the proposed 280-megawatt Sta. Rosa solar project, whose future depends on the Department of Energy‘s decision on a request to reinstate its renewable energy service contract.
MGEN president and chief executive officer Emmanuel Rubio said the company had asked the DOE to allow the project to proceed after demonstrating that development work had been undertaken but challenges arose in meeting the timeline under the Green Energy Auction program.
The Sta. Rosa project was among numerous renewable energy developments affected by the DOE’s cancellation of service contracts covering projects linked to Leviste’s solar businesses.
Regulatory And Legal Pressure
The latest share sale comes as Leviste faces increasing scrutiny over his former and existing renewable energy ventures.
The DOE is pursuing around ₱24 billion in penalties against Solar Philippines after terminating dozens of renewable energy service contracts covering more than 11,400 megawatts of capacity due to alleged failures to meet project commitments.
MGEN has maintained that SPNEC is a separate company and is not liable for the penalties being pursued against Solar Philippines.
Leviste is also under investigation by the Office of the Ombudsman, alongside his mother, Senator Loren Legarda, and former energy secretary Alfonso Cusi, over plunder and graft complaints involving approximately ₱10 billion worth of solar projects.
Ombudsman Jesus Crispin Remulla said the investigation concerns allegations that legislative and regulatory actions were used to obtain government rights over solar projects that were subsequently left undeveloped.
The complaints also raised questions over allegations that Legarda, who previously chaired the Senate finance committee, used her position to assist her son’s efforts to obtain a congressional franchise.
Undelivered Targets
Another complaint centers on allegations that Leviste’s renewable energy company failed to provide solar power as required under its congressional franchise.
Legarda has denied the accusations, describing them as false and baseless.
For his part, Leviste has maintained that Solar Para sa Bayan, the company granted the congressional franchise, was separate from SPNEC and was not the company eventually sold to the Meralco group. He has also said Solar Para sa Bayan had become defunct and stopped operating years ago.
Leviste and Legarda left the Philippines on August 2, according to reports. The Ombudsman has since raised questions about Leviste’s two-month travel authority and Legarda’s repeatedly extended medical leave.
As Leviste continues to reduce his stake, his remaining role in SPNEC is expected to draw further attention, particularly as investigations into his renewable energy ventures continue.
Source:
https://www.rappler.com/business/leandro-leviste-sells-spnec-shares-solar-controversies
https://manilastandard.net/business/314786367/levistes-firm-sells-p3b-in-spnec-shares.html
