Megawide Construction Corp. has acquired a 10-percent stake in Citicore Renewable Energy Corp. (CREC) for P4.7 billion through a block sale transaction with CREC’s parent company, Citicore Power Inc. (CPI).
The transaction involved 1.1 billion secondary shares sold at P4.2877 apiece. The sale was executed at CREC’s 30-day volume-weighted average price (VWAP) as of Sept. 30, meeting the Philippine Stock Exchange’s criteria for a regular block trade, the company said Friday.
The acquisition is part of a settlement agreement signed last month between the Megawide-Citicore group, through which Megawide is recovering P9.4 billion in advances it made to parent firm Citicore Holdings Investment Inc. (CHII) and sister company CPI.
Megawide is receiving the P9.4-billion settlement through a combination of P3.5 billion in upfront cash and P5.9 billion in CREC shares. The balance of P1.5 billion is expected to be finalized before the end of the year.
The construction company said the acquisition of the CREC shares could potentially boost its market capitalization to P11.4 billion from P6.7 billion.
Megawide chairman and chief executive Edgar Saavedra said the transaction “signifies the strong intra-company cooperation within the bigger Megawide-Citicore Group to achieve a shared objective – that is to create and maximize shareholder value.”
He said for Megawide, the asset injection would “strengthen the company’s balance sheet and overall equity position.”
Megawide plans to use the proceeds from the deal to pare down its debts, which stood at the P36 billion level as end-June 2025.
For CPI, the cash advances made by Megawide were vital to the early development of its renewable energy business.
“The assistance extended by Megawide way back in 2016 was crucial in incubating our renewable energy platform and enabling Citicore to power up to where it is now,” said CPI president and chief executive Oliver Tan.
“From the seed capital of P6 billion via advances back then, this allowed us to list two entities – CREC and CREIT – with an attributable market capitalization of around P37 billion,” Tan said.
