MRC Allied buys stake in solar firm
As published on ManilaStandard
MRC Allied Inc. said it expects to close two more acquisitions this year, after buying a 15-percent stake in Leyte-based solar power producer Sulu Electric Power and Light Philippines for P255 million.
MRC Allied president Gladys Nalda said in an interview following the a special stockholders’ meeting the group was evaluating six more potential deals, including two which could be closed before the end of 2017.
Nalda said for the Sepalco deal, the acquisition would solidify the company’s entry into renewable energy and enable it to meet the targeted capacity of 200 megawatts of clean and renewable power project by end-2017.
Sepalco, which lies on a 70-hectare property in Palo, Leyete, has a total of 188 solar panels and is connected to the existing 69-kilovolt transmission line of the National Grid Corp of the Philippines. It has been operating since 2016.
Nalda said MRC Allied would have the option to further increase its stake in Sepalco to at least 51 percent.
“The Sepalco solar power will solidify our entry into the solar power industry, not only because it has allowed us to exceed our 200-MW target for this year, but more importantly we will have an opportunity to take an active part in the managements and operation of an operating power plant,” Nalda said.
MRC Allied is currently developing a 100-MW solar project in Pampanga and a 60-MW solar project in Cebu.
The company adopted a buy and build strategy to accelerate its plan to become a blue chip company and one of the major players in the power industry by 2022.
Meanwhile, shareholders of MRC Allied approved the change in the company’s primary purpose to become a 100-percent energy company and increase its capital stock to P9 billion from P7 billion.
The capital hike will enable the company to raise funds to finance planned acquisitions and development of projects.