Saavedra-led Megawide Construction Corp. is firming up its balance sheet after parent company Citicore Holdings Investment Inc. (CHII) and sister company Citicore Power Inc. (CPI) paid back ₱9.4 billion for advances made by the engineering firm in 2016.

In a disclosure to the Philippine Stock Exchange (PSE), Megawide said it has signed separate agreements for the settlement of advances, with CHII paying ₱4.69 billion and CPI accounting for ₱4.73 billion—both figures inclusive of the principal amount and interest income accrued.

A Megawide spokesperson said the company had advanced ₱3 billion each to CHII and CPI, which had been used as seed capital for their solar power ventures now held by publicly listed companies Citicore Renewable Energy Corp. (CREC) and Citicore Energy REIT Corp.

Based on the agreements, the transaction will have two components—upfront payment of cash amounting to ₱3.5 billion, and the balance of ₱5.9 billion via assignment of CREC shares to Megawide.

“The cash inflow will be used directly to pay down a portion of our outstanding debt, while the ownership of CREC shares will offer immediate earnings accretion and serve as currency for future value realization,” said Megawide Chairman and Chief Executive Officer (CEO) Edgar Saavedra.

Based on the initial proposed valuation methodology, which used the 90-day volume weighted average price (VWAP) of CREC shares as of the last trading day of August 2025, the assignment involves approximately 1.47 billion shares and is equivalent to an around 13-percent stake in CREC.

The final share price and final number of shares to be involved, however, will be agreed upon by both parties and subject to validation of external independent parties, regulatory approvals, and reasonable market movements.

“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 ₱37 billion—attributable to our respective shares in both companies—and with very strong growth prospects,” Saavedra noted.

Thus, he said that, “Management deems it appropriate to already close out the advances and allow us to focus on Megawide’s growth agenda anchored on construction, real estate, and infrastructure.”

“We are very excited for this pivotal shift as we strategically rebuild and recreate shareholder value of Megawide.

“To complement this financial management program, we are finalizing several initiatives and negotiating critical projects that will provide us with sustainable income streams in the years ahead, that will further drive shareholder value,” Saavedra stressed.