A Citicore Renewable Energy solar farm in Bulacan, north of Manila.
PT Pertamina will acquire 20% of tycoon Edgar Saavedra’s Citicore Renewable Energy Corp. for 6.7 billion pesos ($118 million), providing the Philippine company with funds for expansion.
PT Pertamina Power, a unit of the Indonesian state-owned oil and gas company, has agreed to buy about 2.2 billion new Citicore Renewable shares at 3 pesos each, the Manila-based company said in a Philippine Stock Exchange filing. Pertamina will get a board seat in the company, it said.
“The proceeds from the agreement will contribute to the development of the company’s pipeline of renewable energy projects nationwide,” Citicore Renewable Energy said.
Citicore Renewable Energy, which Saavedra took public a year ago in a 5.6 billion peso IPO, is among several Philippine companies that are aggressively building capacity in renewables amid the nation’s push to clean energy and expectations economic growth will accelerate. Its five-year commitment to deliver 5 gigawatts of solar capacity would cost 180 billion pesos in investments, Saavedra has said.
With Pertamina Power as a shareholder, Citicore Renewable Energy said it will have the opportunity to develop renewable energy projects in Indonesia and other parts of Southeast Asia. Pertamina Power, on the one hand, gets access to Citicore Renewable Energy’s expertise in project development, as well as engineering, procurement and construction, it said.
To comply with the PSE’s 20% minimum public float requirement, majority owner Citicore Power will sell 346.3 million shares to the public, according to the stock exchange filing. The sale will reduce Citicore Power’s stake in Citicore Renewable Energy to 59.9% from 78.8% and will be done before the transaction with Pertamina Energy is completed, it said.
A civil engineer, Saavedra built his wealth on Megawide, a construction and engineering firm that he co-founded. With interests in property development and transportation, Saavedra had a $270 million net worth when Forbes Asia published the list of the Philippines 50 Richest in August.
