SP NEW ENERGY CORP. (SPNEC) said it has applied for regulatory approval to change its corporate name to MGEN Renewable Energy Holdings, Inc., as part of a broader rebranding initiative within its parent group.
In a statement on Thursday, SPNEC said it filed an application with the Securities and Exchange Commission (SEC) to amend its corporate name and change its stock symbol to MGENR.
The company said the move forms part of the “ongoing rebranding initiative” of its parent, Meralco PowerGen Corp. (MGEN), which began in August last year.
“It aims to strengthen alignment and consistency across the One MGEN group as it presents a unified identity for its diversified power generation portfolio, including renewable energy,” SPNEC said.
SPNEC added that the initiative is intended to “enhance clarity and ease of identification for stakeholders and does not involve any changes to SPNEC’s ownership structure, operations, or existing renewable energy projects.”
SPNEC is a subsidiary of MGEN, the power generation arm of Manila Electric Co. (Meralco).
Analysts said the rebranding may help clarify the company’s position within the Meralco group following recent developments in the renewable energy sector.
“SPNEC’s corporate name change positions the company away from the Solar Philippines branding and allows it to be perceived as a renewable energy arm within Meralco’s ecosystem, which has an impeccable track record in project execution,” Shawn Ray R. Atienza, an equity research analyst at AP Securities, Inc., told BusinessWorld.
Juan Paolo E. Colet, managing director at China Bank Capital Corp., said the move could support Meralco PowerGen’s longer-term plans for its renewable energy business.
“I think this confirms that Meralco PowerGen will push through with the backdoor infusion of its renewable energy business into the listed company,” he said.
MGEN said last year that it is evaluating a potential initial public offering of its renewable energy unit, MGEN Renewable Energy, Inc., which may involve the injection of assets into SPNEC in exchange for shares.
SPNEC is developing the MTerra Solar Project through its subsidiary, Terra Solar Philippines, Inc.
The project consists of a 2,500-megawatt solar facility with a 4,600-megawatt-hour battery energy storage system located in Nueva Ecija and Bulacan.
The first phase of the project is expected to be completed early this year, while the second phase is scheduled for completion in 2027.
MTerra Solar is expected to contribute to MGEN’s goal of reaching 1,500 megawatts of renewable energy capacity by 2027.
Meralco’s controlling shareholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera