Japanese firm Tokai Corporation is beefing up its shareholdings in Filipino-listed firm Repower Energy Development Corporation (REDC), which is into development of various renewable energy (RE) projects in the country.

Tokai first subscribed into 65 million common shares of REDC, and that warranted it to corner 9.99% equity in the Philippine RE company that is chaired by businessman Renato Locsin.

Via a disclosure at the Philippine Stock Exchange (PSE), the Japanese firm stipulated that it is intending to “further acquire from Pure Energy Holdings Corporation an additional 65 million common shares in REDC, which will be implemented by way of a block sale,” that shall be concretized through the facilities of the local bourse.

“Once implemented, such acquisition will result in Tokai’s ownership of 20.01% of the total outstanding capital stock of REDC,” Tokai stressed.

The Japanese company is a wholly-owned subsidiary of Tokai Holdings Corporation, which is a publicly-listed business at the Tokyo Stock Exchange – and its main line of business is in the energy sector, primarily in the manufacture and sale of liquefied petroleum gas (LPG), liquefied natural gas (LNG) as well as high pressure gas and equipment.

Tokai expounded that its declaration of targeted higher shares acquisition in REDC is in compliance with the prescription of Rule19.2.1 of the implementing rules and regulations (IRR) of the Securities Regulation Code – primarily if the equity purchase shall be at least 15%.

Pure Energy, in turn, is a holding company that has investments in the RE industry as well as in the water sector; and REDC had been its major development platform in the power industry.

REDC is currently advancing into commercial stream several run-of-river hydropower facilities – including its 4.5-megawatt project in Quezon province; then its 20MW hydropower development in Bukidnon – which are both targeted for commissioning next year.

Onward, the company indicated that it will continue to explore prospects in the RE sector, so it can become a viable ally in the government’s decarbonization push for the energy sector.

Beyond the aggressive play of most big-ticket RE investors for wind and solar project, the run-of-river hydropower development remained on a very gradual stride because this is a technology that will be requiring longer gestation periods.