COSCO Capital Inc., the listed retail holding company of business mogul Lucio Co, is eyeing the acquisition of another hydropower facility to boost its energy portfolio.
In a disclosure on Thursday, Cosco said that its board of directors had approved a plan to buy 9,176,317 outstanding shares of Matuno River Development Corp. (MRDC) at a price below 10 percent of Cosco’s total book value.
“This proposed acquisition will be an addition to the emerging renewable energy portfolio of Cosco Capital Inc., as well as to its entire operating segment, generating more income for the company,” it said in the disclosure.
The final price per share will be “announced in due course,” the firm said, adding that payment would be made via checks.
The acquisition will also be submitted for vetting by the Philippine Competition Commission if needed, it said.
“The intended transaction offers Cosco Capital Inc. the opportunity to enter into another profitable business within the renewable energy sector,” the company said.
“This strategic move will enhance its sustainability profile, demonstrate a commitment to environmental responsibility, while contributing to the country’s overall economic development,” it added.
MRDC is the developer of the 8.66-megawatt Matuno River run-of-river hydroelectric power plant in Bambang, Nueva Vizcaya, that is covered by a service contract with the Department of Energy.
Cosco Capital’s share price inched up by a centavo to P4.59 apiece on Thursday.
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