Engineering and infrastructure company Megawide Construction Corp. has secured minority ownership in listed affiliate Citicore Renewable Energy Corp. (CREC) following a block sale with Citicore Power Inc. (CPI).
In a stock exchange filing, Megawide said the transaction involving 1.10 billion secondary shares of CREC, representing 9.88 percent of its outstanding common stock, is non-dilutive to existing shareholders.
The company said the valuation used and price at which the transaction was executed was the 30-day volume-weighted average price of CREC shares as of Sept. 30, which also met the Philippine Stock Exchange’s guidelines of a regular block trade.
‘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,’ Megawide chairman and CEO Edgar Saavedra said.
Saavedra expects the asset injection to strengthen Megawide’s balance sheet and overall equity position.
The deal forms the bulk of the settlement of advances agreed among the Megawide-Citicore group of companies on Sept. 10, with the balance of P1.5 billion expected to be concluded by the end of the year.
Megawide earlier said the company would receive P9.4 billion from parent Citicore Holdings Investment Inc. and sister company CPI as settlement of advances.
‘Currently, our market capitalization stands at P6.6 billion and the value of the subject CREC shares, based on last closing price, is around P4.9 billion. From a valuation standpoint, the infusion represents an additional boost to our existing market capitalization and immediate upside to shareholders and investors,’ Saavedra said.
Megawide earlier announced it is entering a renewed chapter in its corporate history, with 2025 as the pivotal year.
The company recently bagged a multibillion-peso deal with property giant Megaworld Corp. for two new projects.
It has also expressed strong interest to participate and become a major player in the government’s Pambansang Pabahay Para sa Pilipino or 4PH program.