Megawide Construction Corp. announced Thursday it has signed agreements to recover P9.4 billion in advances from its parent firm, Citicore Holdings Investment Inc. (CHII), and sister company Citicore Power Inc. (CPI).
In a disclosure to the stock exchange, Megawide said it will receive P4.69 billion from CHII and P4.73 billion from CPI. The total amount includes both principal and accrued interest.
The settlement will be completed through a combination of P3.5 billion in upfront cash and P5.9 billion in shares of Citicore Renewable Energy Corp. (CREC), which will be assigned to Megawide.
“The cash inflow will be used directly to pay down a portion of our outstanding debt, while the ownership of CREC shares will offer immediate earnings accretion and serve as currency for future value realization,” said Megawide chairman and chief executive Edgar Saavedra.
The proposed valuation method for the share transfer is based on the 90-day volume weighted average price of CREC shares as of the last trading day of August 2025.
This equates to roughly 1.47 billion shares, or about a 13 percent stake in CREC. The final number of shares will be subject to agreement, external validation, market movements and regulatory approvals.
Saavedra said the timing of the transaction aligns with the strong performance of their investments in the power sector.
“We believe that this is good timing as our investment in the power business is starting to bear fruit,” Saavedra said.
“From the early capital we infused in the platform, it has already produced two publicly listed entities, currently having a combined market capitalization of approximately P37 billion.”
Saavedra added that closing out the advances will allow Megawide to sharpen its focus on its core businesses: construction, real estate and infrastructure.
“We are very excited for this pivotal shift as we strategically rebuild and recreate shareholder value of Megawide,” he said. “We are finalizing several initiatives and negotiating critical projects that will provide us with sustainable income streams in the years ahead.”
As of the end of June, Megawide’s total debt was P36 billion.
