Megawide Construction Corp. has signed agreements with its parent company Citicore Holdings Investment, Inc. (CHII) and sister company Citicore Power Inc. (CPI) to settle advances totaling PHP 9.4 billion.

Under the settlement, PHP 3.5 billion will be paid in cash, while the remaining PHP 5.9 billion will be settled through shares of Citicore Renewable Energy Corp. (CREC). The share transfer is based on the 90-day average price of CREC stock as of August 2025, estimated at about 1.47 billion shares or roughly 13% ownership. Final terms will still need to be validated by independent parties and approved by regulators.

Megawide Chairman and CEO Edgar Saavedra said the cash inflow will be used to pay down debt, while the CREC shares will provide immediate income benefits and can serve as an asset for future growth.

“We believe that this is good timing as our investment in the power business is starting to bear fruit. From the early capital we infused in the platform, it has already produced two publicly listed entities, currently having a combined market capitalization of approximately PHP37.0 billion,” Saavedra said.

He added that settling the advances will allow Megawide to refocus on its main businesses in construction, real estate, and infrastructure, while also preparing new projects that can bring in sustainable income.

“We are very excited for this pivotal shift as we strategically rebuild and recreate shareholder value of Megawide,” Saavedra said, noting that the company is also finalizing several initiatives and negotiating new projects.

Do you think Megawide’s move to cut debt and gain a bigger stake in renewable energy will give it stronger footing for long-term growth?

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