PPP contractor Megawide buys into renewables firm Citicore
Manila, Philippines – Megawide Construction Corp., the listed engineering contractor for a number of government infrastructure projects, has bought into Citicore Renewable Energy Corp. (CREC) in a deal valued at P4.7 billion.
The transaction gives Megawide a 10 percent direct stake in Citicore, a listed renewables firm whose 10 operating solar assets provide a combined 285.1 megawatts in capacity, as well as 812.5 megawatts in onshore wind power and 3.1 gigawatts in offshore wind generation capacities.
In a disclosure to the stock exchange on Friday, Oct. 17, Megawide said the acquisition was priced using CREC’s 30-day volume-weighted average as of Sept. 30.
The transaction settles an earlier agreement between Megawide and Citicore group. The latter owed Megawide P9.4 billion in advances in 2016, and the settlement involves the Citicore group paying tranches of P4.69 billion and P4.73 billion through its parent company Citicore Holdings Investment Inc. (CHII) and sister company Citicore Power Inc. (CPI), respectively, through cash and shares.
“The transaction is non-dilutive for existing shareholders as it involved 1,103,095,410 secondary shares of CREC, representing 9.88% of its outstanding common stock,” Megawide said in its disclosure on Friday.
“The deal forms bulk of the settlement of advances agreed among the Megawide-Citicore group of companies last September 10, 2025 – with the balance of P1.5 billion expected to be concluded by the end of the year,” it added.
The asset injection will boost the engineering firm’s balance sheet, said Megawide Chairman and CEO Edgar Saavedra.
“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,” Saavedra said.
“From a valuation standpoint, the infusion represents an additional boost to our existing market capitalization and immediate upside to shareholders and investors,” explained Saavedra.
Megawide recently bagged a multibillion-peso megadeal with Megaworld Corporation for two new projects and expressed interest to participate in the government’s Pambansang Pabahay Para sa Pilipino or 4PH program.
Publicly listed since 2011, Megawide is the private partner of the government in major public infrastructure projects such as the Public Private Partnership for School Infrastructure Project Phases 1 and 2; the multi-year developments of Mactan-Cebu International Airport and the Parañaque Integrated Terminal Exchange; and the construction of Clark International Airport.
