Cosco ventures into RE with P552-M investment

Cosco Capital Inc. of retail tycoon Lucio Co has formalized its renewable energy venture with a P552-million investment for a majority stake in a company that operates a hydropower plant in Oriental Mindoro.

In a stock exchange filing, Cosco Capital said it has finalized its acquisition of a 60-percent stake in Catuiran Hydropower Corp.

The transaction consists of Cosco’s purchase of 360 million shares at P1.533 apiece, or a total of P551.88 million.

The shares were acquired by the company from Union Energy Corp., whose majority stocks are beneficially owned by Lucio Co and Susan Co.

Cosco said it has been notified by the Philippine Competition Commission that the transaction is not subject to compulsory notification, thus clearing the path for the parties to close the transaction.

The company said the acquisition of Catuiran would bring an additional profitable business operating segment to the group.

Catuiran is primarily engaged in the business of building, constructing, operating and maintaining power plant.

It operates an eight-megawatt hydropower plant in Naujan, Oriental Mindoro which is covered by a renewable energy service contract with the Department of Energy.

Cosco Capital, Co’s listed retail holding company, earlier expressed plans to enter the renewable energy space.

The company said it is looking at its entry in the renewable energy business as another opportunity segment to expand and become a profitable business portfolio in the medium and long-term.

Such move is also seen aligning the company with the government’s thrust in renewable energy and contribute to the economic development of the country.