Cosco Capital is expanding its firm’s renewable energy investments by acquiring another hydroelectric facility.
Philippine Star reported that Cosco Capital Inc., Lucio Co’s listed retail firm, announced its plan to acquire 100% of Matuno River Development Corporation, the developer of the Matuno River hydroelectric power plant in Nueva Vizcaya.
The energy firm said that the purchase price for this acquisition is less than 10% of the company’s total book value as of the end of March, and the planned acquisition would be handed over to the Philippine Competition Commission for approval.
The acquisition will add to Cosco’s growing renewable energy portfolio and enhance its overall operating segment, which in turn will generate additional income for the company.
The 8.66 megawatt (MW) run-of-river Matuno River hydroelectric power project is under contract with the Department of Energy (DOE) for hydro power services. The energy for the project is sourced from the Matuno River, an extension of the Magat Dam.
Cosco’s entry into the renewable energy sector is aimed at expanding and developing a profitable business portfolio in the medium and long term.
Cosco established its renewable energy business in March by investing Php 552-million for a majority share in Catuiran Hydropower Corporation, a construction and operation company.
