Leandro Leviste's holding company has cashed out P3 billion from its stake in SP New Energy Corp. (SPNEC), just days before the firm approved a land acquisition deal with subsidiaries under his control.
This sequence of events has raised flags among shareholders regarding the integrity and valuation of the transactions involving Leviste's private firms.
Concerns Over Related-Party Transactions
SPNEC has disclosed the details of the share sale, but lacks clarity on the terms of the land acquisition. Investors are questioning how the funds from the share sale relate to the new land purchases.
The deal involves wholly owned Terra Nueva Inc. acquiring land from Provincia Investments Corp. and JJPNM Agro Industrial Corp., both subsidiaries of Leviste's holding company.
The Need for Transparency
Shareholders are calling for full disclosures, including the original purchase price of the properties and the appraised values. SPNEC’s governance framework mandates that related-party transactions be fair and conducted at arm’s length.
- SPNEC reported the share sale of 2.4 billion shares at P1.25 each, reducing its stake from 16.30% to 11.51%.
- Previous related-party arrangements included a 2021 deal covering 68.62 hectares for P267 million.
The lack of information regarding the current land valuation compared to previous commitments could imply potential conflicts of interest.
A Complicated Background
This situation is further complicated by the troubled history of the Solar Philippines ecosystem, which has seen the Department of Energy terminate over 11,000 megawatts of renewable capacity due to unmet obligations.
Concerns around these governance issues highlight a broader question: are the rights obtained for renewable energy generation primarily for energy production, or are they becoming financial assets subject to speculation?
As SPNEC transitions under new management, with MGEN Renewables now at the helm, the focus will be on how these changes affect the company's governance and its relationship with Leviste's enterprises.