Citicore Renewable Energy Corporation (CREC) on Monday disclosed a property dividend declaration by its majority shareholder, Citicore Power Inc. (CPI), a move that will directly redistribute CPI’s stake in the listed renewable energy firm to its two ultimate owners while keeping management control intact. 

In a disclosure to the Philippine Stock Exchange dated December 29, CPI declared property dividends in favor of Citicore Holding Investments Inc. (CHII) and Purple Seed Capital Holding Inc. (PSCHI), its two shareholders holding 80% and 20% of CPI, respectively.  

CPI currently holds 5.58 billion common shares in CREC. Once the property dividend is completed, CHII will directly own 4.47 billion CREC shares, equivalent to 40.03% of the company, while PSCHI will directly own 1.12 billion shares, or 10.01%. 

CHII is owned by CREC Chairman Edgar Saavedra, while PSCHI is owned by CREC President and CEO Oliver Tan. Following the distribution, Saavedra and Tan will collectively maintain majority ownership of CREC through their respective holding companies.

“This strategic action will streamline Saavedra and Tan’s ownership in CREC, collectively maintaining majority ownership and management control over CREC and its subsidiaries,” the company said in the disclosure. 

Tan underscored that the change is limited to ownership structure and will not alter how the company is run. “We will still maintain majority and management control. This will ensure continuity in governance, leadership, and strategic oversight over CREC,” he said. 

CREC also said the transaction will not disrupt its business plans or financial commitments, noting that the property dividend distribution will not affect the company’s or its subsidiaries’ ability to meet obligations under existing loan agreements. 

“We remain fully aligned in our strategic direction and fully committed to sustaining CREC’s momentum in the renewable energy sector. This initiative strengthens our shareholders’ ability to support CREC’s continued expansion, while preserving stability and transparency across our operations,” Tan added. 

The payment of the property dividend remains subject to the required approvals and consents from government agencies and relevant third parties.

CREC is one of the country’s largest pure-play renewable energy developers, with a portfolio spanning solar, hydro, and wind projects, and is also the sponsor of Citicore Energy REIT Corp., the Philippines’ first renewable energy REIT.

What do you think this ownership restructuring signals for CREC’s long-term strategy and investor confidence in the Philippine renewable energy sector? Join the discussion.

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