Megawide Construction Corp is now a part the country’s energy sector after acquiring Citicore Power for its five year diversification plan.
One of the largest construction and infrastructure firms will now be venturing into renewable energy after acquiring a 100-percent stake in Citicore Power Inc.
In a statement, Megawide said that the acquisition is part of the company’s diversification plan that aims to transform the company into a fully diversified infrastructure conglomerate.
The company now has four core businesses which include construction, airport operation and transport. Its power generation business will focus on renewable energy.
Citicore Power is committed to produce 100 megawatts (MW) of clean energy through renewable energy sources such as solar, biomass, wind, and hydro power.
Citicore currently operates three solar projects located in the provinces of Bataan, Negros Occidental and Cebu. The three projects account for more than 100 megawatts of power into the national grid.
“We remain bullish and hopeful in this current track and look forward to contributing to a stronger economy for the country,” Megawide chief executive Michael Cosiquien said.
Megawide chief financial officer Oliver Tan added that this diversification was part of the company’s vision upon being public in 2011.
“The IPO was set up with the vision to transition from pure construction to a well-diversified infrastructure and engineering conglomerate. Now we have achieved that, we want to pursue stronger, wider-ranging recurring sources of revenue,” Tan said.
Citicore Power is a subsidiary of Citicore Holdings Inc, which also a major shareholder of Megawide.
Megawide acquired the concession to operate the Mactan-Cebu International Airport in 2014. The build-operate- transfer (BOT) contract includes the renovation of all landside facilities and a second passenger terminal construction.
In 2015, Megawide also joined the transport industry after bagging the Southwest Integrated Transport Terminal Project.
On Friday, the construction company bought back 410, 842, 702 shares from Sy family-owned Sybase Equity Investment Corp.
“We remain bullish and hopeful in this current track and look forward to contributing to a stronger economy for the country,” said Cosiquien.