Citicore raises P5B from CREIT share sale to SMIC
‘We are investing in CREIT to increase SM’s footprint in the renewable energy sector’ — SMIC president Frederic DyBuncio
Renewable energy company Citicore Renewable Energy Corp. (CREC) and its wholly-owned subsidiary Citicore Solar Tarlac 1 Inc., raised P5 billion from selling 28.79 percent of their share in Citicore Energy REIT Corp. (CREIT) to SM Investments Corp. (SMIC).
In a stock exchange report on Wednesday, CREIT disclosed that the sale of shares comprised 1.88 billion shares at P2.65 per share.
Unlocks potential synergies
“We believe that the SM group’s entry and investment into CREIT and the partnership with CREC unlocks potential synergies given the energy requirements of the SM group,” CREC president and CEO Oliver Tan said.
Proceeds from the sale will contribute to the further development of CREC’s 1,583-megawatt (MW) ready-to-build and under-construction solar power projects across eight site locations nationwide as of the end of 2023.
CREIT is the largest renewable energy REIT landlord in the country having approximately 7.1 million square meters of gross leasable area.
Meanwhile, CREC aims to contribute approximately 1,000 MW of solar energy capacity per year as part of its five-year pipeline rollout roadmap.
Increasing SM’s footprint in RE sector
“As part of our group-wide sustainability agenda to prioritize environmental responsibility and support a low-carbon economy, we are investing in CREIT to increase SM’s footprint in the renewable energy sector,” SMIC President Frederic DyBuncio said.
CREC will continue to be the single largest stakeholder in CREIT with a 32.88 percent effective ownership post-transaction.
BDO Capital & Investment Corporation acted as Transaction Adviser for the sale.