The Government Service Insurance System (GSIS) expanded its investment in Citicore Renewable Energy Corp. (CREC) to ₱4.5 billion, completing a series of secondary-market purchases that finalized builder Megawide Construction Corp.’s exit from the solar producer.

CREC disclosed to the Philippine Stock Exchange on Friday, July 3, that the state-owned Philippine pension fund acquired an additional 170.14 million shares from Megawide on June 26.

The transaction is equivalent to a nine percent stake in CREC and pushes the retirement fund’s total holdings in the clean energy company to one billion shares.

The transaction marked the culmination of a broader selldown by Megawide, which began offloading its assets in May. Prior to the latest block sale, CREC reported that the pension manager had quietly accumulated a 7.48 percent stake, comprising 834.33 million shares, across three separate tranches.

Abacus Securities Corp. earlier noted that Megawide had been liquidating its position over the past two months without revealing the counterparty. The brokerage valued that initial 7.48 percent stake at ₱3.7 billion.

The multi-billion-peso transaction creates a dual catalyst for the listed companies. While it delivers an institutional vote of confidence for CREC’s clean energy pipeline, it simultaneously frees up liquidity for Megawide to focus on its core engineering and infrastructure operations, according to Abacus Securities.

Megawide Chairman and Chief Executive Officer Edgar Saavedra said the transaction allows the builder to realize value from its investment while introducing a long-term institutional partner to CREC.

He noted that the proceeds will be deployed toward expanding the company's precast concrete manufacturing business and paring down outstanding liabilities.

The divestment forms part of a broader balance-sheet restructuring at Megawide, which faces heavy capital expenditure demands from state-backed housing programs. The construction firm successfully trimmed ₱6 billion from its liabilities, lowering its short-term debt to ₱12 billion at the end of March 2026. 
It expects short-term obligations to decline further to approximately ₱10 billion by the end of June, a move projected to yield between ₱250 million and ₱300 million in annualized interest savings.

The interest expense reductions and an expanding project pipeline are expected to fuel a 79 percent surge in Megawide’s full-year net income, with management targeting ₱1.2 billion compared to the ₱669 million generated in 2025.

Saavedra said the company remains on track to hit its back-ended profit targets for the year. He expressed confidence in sustaining medium- to long-term growth, citing a robust internal order book, large-scale external projects, and mass-housing contracts secured under the government’s expanded Pambansang Pabahay Para sa Pilipino, or 4PH, initiative.