Cosco Capital Inc., the listed holding company of businessman Lucio Co, said Tuesday it completed the acquisition of 100-percent stake in renewable energy producer Matuno River Development Corp. (MRDC) for more than P1 billion.
Cosco said in a disclosure to the stock exchange it acquired 9.176 million shares in MRDC from Magis Energy Holdings Corp. and Ruben Diego Picardo at P111.16 apiece, through one-time cash payment.
The total amount is below 10 percent of Cosco’s total book value as of end-June 2024. Cosco said the acquisition would add to the company’s growing renewable energy portfolio
“This 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,” said Cosco.
MRDC, formed in 2014, is the developer of the Matuno River Hydroelectric Power Plant, an 8.66-megawatt run-of-river hydroelectric power plant in Bambang, Nueva Vizcaya.
The project is covered by a hyrdo power service contract with the Department of Energy. The plant draws energy from the Matuno River, a tributary of the Magat Dam.
Cosco said the acquisition is not subject for approval by the Philippine Competition Commission
Cosco, which has investments in retail, real estate, wine and liquor and oil and minerals, diversified into renewable business in 2023 when it acquired a 60-percent stake in Catuiran Hydropower Corp. (CHC) for P552 million.
CHC, primarily engaged in the business of building, constructing, operating and maintaining power plants, operates 8 megawatts of hydropower plant in Naujan, Oriental Mindoro.
Cosco said its entry into the renewable energy sector is aimed at expanding and developing a profitable business portfolio in the medium and long term.
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