Tycoon Lucio Co’s Cosco Capital, Inc. is beefing up its renewable energy portfolio with the planned acquisition of 100 percent of a company that owns a hydroelectric power plant in Nueva Vizcaya.
In a disclosure to the Philippine Stock Exchange, the firm said its board of directors had approved its plan to acquire 100 percent of the outstanding shares of Matuno River Development Corporation from Magis Energy Holdings Corporation and Ruben Diego Q. Picardo.
Cosco said the price will be disclosed later but noted, “The amount of consideration is determined on the basis of the book value of Matuno River Development Corporation as of June 30, 2024.”
“This proposed acquisition will be an addition to the emerging renewable energy portfolio of Cosco Capital, Inc., as well as to its entire operating segment, generating more income for the company,” Cosco said.
It added, “The intended transaction offers Cosco Capital, Inc. the opportunity to enter into another profitable business within the renewable energy sector.
“This strategic move will enhance its sustainability profile, demonstrate a commitment to environmental responsibility, while contributing to the country's overall economic development.”
Matuno River Development Corporation is a domestic corporation incorporated and registered with the Securities and Exchange Commission on September 1, 2014.
MRDC is the developer of the Matuno River Hydroelectric Power Plant, an 8.66MW run-of-river hydroelectric power plant located in Bambang, Nueva Vizcaya. It is covered by a Hyrdo Power Service Contract with the Department of Energy.
This power station draws energy from the Matuno River, a tributary of the Magat Dam.
Cosco said the proposed acquisition will be submitted for approval by the Philippine Competition Commission, if applicable.