Megawide Construction Corp. (Megawide) has officially acquired a nearly 10% direct ownership in Citicore Renewable Energy Corp. (CREC) through a block sale with parent firm Citicore Power Inc. (CPI), marking a key development in the group’s ongoing capital realignment.

The transaction involved 1.1 billion secondary shares of CREC, equivalent to 9.88% of its outstanding common stock. Megawide emphasized that the deal is non-dilutive for existing CREC shareholders, as no new shares were issued.

The acquisition forms the major part of the settlement of advances between the Megawide–Citicore group announced in September, with the remaining balance of PHP 1.5 billion expected to be settled by year-end. The sale was executed based on the 30-day volume-weighted average price (VWAP) of CREC shares as of September 30, 2025, in accordance with Philippine Stock Exchange block trade guidelines.

“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. For Megawide, this asset injection will strengthen the Company’s balance sheet and overall equity position,” said Megawide Chairman and CEO Edgar Saavedra in an official statement.

Saavedra added that Megawide’s current market capitalization stands at PHP 6.6 billion, while the CREC shares are valued at approximately PHP 4.9 billion based on the last closing price. “From a valuation standpoint, the infusion represents an additional boost to our existing market capitalization and immediate upside to shareholders and investors,” he said.

The move comes as Megawide embarks on what it calls a “renewed chapter” in 2025, following recent multi-billion peso contracts with Megaworld Corp. and its expressed intent to play a major role in the government’s Pambansang Pabahay Para sa Pilipino (4PH) program.

CPI President and CEO Oliver Tan said the transaction also marks a milestone in the group’s evolution. “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. From the seed capital of PHP 6 billion via advances back then, this allowed us to list two entities – CREC and CREIT – with an attributable market capitalization of around PHP 37 billion. As part of good housekeeping and stronger corporate governance, we have settled these outstanding balances so Megawide can engineer its growth agenda,” Tan said.

CREC, listed earlier this year, represents Citicore’s renewable arm focused on expanding solar, hydro, and other clean energy assets across the Philippines. The company has 285 MW of installed solar capacity and a target of 5 GW by 2028. CREC recently switched on the country’s first solar baseload plant in Tuy, Batangas—a 197 MWp solar facility with a 320 MWh battery energy storage system.

What are your thoughts on Megawide’s entry into direct renewable energy ownership? How might this reshape capital flows and partnerships in the Philippine energy sector? Share your insights with us.

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