Cosco Capital Inc. of businessman Lucio Co is expanding its renewable business with the acquisition of 100 percent of Matuno River Development Corp. (MRDC).
Cosco said in a disclosure to the stock exchange Thursday its board approved the planned acquisition in a meeting on July 3, 2024.
“The intended transaction offers Cosco Capital Inc. the opportunity to enter into another profitable business within the renewable energy sector. This strategic move will enhance its sustainability profile, demonstrate a commitment to environmental responsibility, while contributing to the country’s overall economic development,” the company said.
Cosco did not disclose the acquisition cost, but said the price was below 10 percent of its total book value as of end-March 2024.
MRDC, formed in 2014, is the developer of the Matuno river hydroelectric power plant, a 8.66-megawatt run-of-river hydroelectric power plant in Bambang, Nueva Vizcaya.
The project is covered by a hyrdo power service contract with the Department of Energy. The power station draws energy from the Matuno River, a tributary of the Magat Dam.
MRDC is owned by Magis Energy Holdings Corp., a holding company that owns several renewable projects in the Visayas.
The proposed acquisition will be submitted for the approval of the Philippine Competition Commission, if applicable.
Cosco, which has investments in retail, real estate, wine and liquor and oil and minerals, diversified into renewable business in 2023 when it acquired a 60-percent stake in Catuiran Hydropower Corp. (CHC) for P552 million. Jenniffer B. Austria
CHC, primarily engaged in the business of building, constructing, operating and maintaining power plants, operates 8 megawatts of hydropower plant in Naujan, Oriental Mindoro.
The share price of Cosco rose 0.22 percent Thursday to close at P4.59.
