Megawide Construction Corp., one of the country’s largest construction and infrastructure companies, is venturing into renewable energy with the acquisition of a 100-percent stake in Citicore Power Inc.
Megawide said in a statement the acquisition was in line with the company’s five-year diversification plan aimed at transforming the company from a pure construction and engineering firm into a fully diversified infrastructure conglomerate.
Megawide said with the acquisition, it would now have four core businesses, including construction, airport operation, transport and power generation with a focus on renewable energy.
Citicore Power is a subsidiary of Citicore Holdings Inc., which is also a major shareholder of Megawide.
Citcore Power committed to produce 1,000 megawatts of clean energy such as solar, biomass, wind and hydropower. It currently operates three solar power projects in the provinces of Bataan, Negros Occidental and Cebu. The three facilities already account for more than 100 megawatts.
“We remain bullish and hopeful in this current track and look forward to contributing to a stronger economy for the country,” Megawide chief executive Michael Cosiquien said.
Megawide, which was listed on the Philippine Stock Exchange in 2011, started as a construction company.
It successfully acquired the concession to operate Mactan Cebu International Airport through a public bidding in 2014. The 25-year build-operate-transfer contract includes the renovation of all landside facilities and the construction of a second passenger terminal.
Megawide added transport into its business in 2015, after it bagged the Southwest Integrated Transport Terminal project.
Megawide said its foray into the project would enable it to venture into property development, as the 35-year BOT contract was expected to generate a mix of transportation infrastructure supported by mixed-use retail and commercial recurring revenues.
Megawide on Friday bought back 410,842,702 shares from Sybase Equity Investment Corp., a privately held company owned by the Sy family.
The shares, equivalent to 17 percent of total issued and outstanding shares of the company, were acquired by Sybase Equity during Megawide’s IPO.
The final acquisition price will be based on the seven-trading day volume weighted average price of the company ending July 28, 2016.