Saavedra-led infrastructure and engineering firm Megawide Construction Corp. has completed its acquisition of 9.88 percent of affiliate Citicore Renewable Energy Corp. (CREC), effectively gaining a new revenue source from solar power.

In a disclosure to the Philippine Stock Exchange, Megawide said it has successfully executed a block sale with CREC’s parent company, Citicore Power, Inc. (CPI), for 1.1 billion CREC shares owned by CPI.

“The transaction signifies the strong intra-company cooperation within the bigger Megawide-Citicore Group to achieve a shared objective – that is to create and maximize shareholder value,” said Megawide Chairman and CEO Edgar Saavedra.

He added, “For Megawide, this asset injection will strengthen the Company’s balance sheet and overall equity position.”

“Currently, our market capitalization stands at ₱6.6 billion and the value of the subject CREC shares, based on last closing price, is around ₱4.9 billion. From a valuation standpoint, the infusion represents an additional boost to our existing market capitalization and immediate upside to shareholders and investors,” explained Saavedra.

The deal forms the bulk of the settlement of advances agreed among the Megawide-Citicore group of companies last September 10, 2025, with the balance of ₱1.5 billion expected to be concluded by the end of the year.

The valuation used and price at which the transaction was executed was the 30-day volume-weighted average price (VWAP) of CREC shares as of Sept. 30, 2025, which also met the PSE’s guidelines of a regular block trade.

Megawide said earlier that its parent company, Citicore Holdings Investment, Inc. (CHII), and sister company CPI paid back ₱9.4 billion for advances made by the engineering firm in 2016.

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 accrued interest income.

Megawide had advanced ₱3 billion each to CHII and CPI, which was used as seed capital for their solar power ventures now held by publicly-listed companies Citicore Renewable Energy Corporation 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 Saavedra.

For CPI, “The assistance extended by Megawide way back in 2016 was crucial in incubating our renewable energy platform and enabling Citicore to power up to where it is now.”

“From the seed capital of ₱6.0 billion via advances back then, this allowed us to list two entities – CREC and CREIT – with an attributable market capitalization of around ₱37.0 billion.

“As part of good housekeeping and stronger corporate governance, we have settled these outstanding balances so Megawide can engineer its growth agenda,” said CPI President and CEO Oliver Tan.

CREC reported an attributable net income of ₱618.28 million in 2024 and ₱305.47 million in the first half of 2025. Moving forward, Megawide can start accounting for 9.88 percent of CREC’s earnings.