September 11, 2024 | 12:00am
MANILA, Philippines — Cosco Capital Inc., the listed retail holding firm of tycoon Lucio Co, has sealed its P1-billion acquisition of a company behind a hydroelectric power plant in Nueva Vizcaya, boosting the group’s growing renewable energy portfolio.
Cosco said it has completed the acquisition of 9.18 million shares representing 100 percent of the outstanding shares of Matuno River Development Corp. (MRDC) at P111.16 apiece.
MRDC is the developer of the Matuno river hydroelectric power plant, an 8.66-megawatt (MW) run-of-river hydroelectric power plant in Bambang, Nueva Vizcaya.
The power station draws energy from the Matuno river, a tributary of the Magat dam.
Through a letter, the Philippine Competition Commission has confirmed Cosco’s acquisition of MRDC is not subject to the compulsory notification requirement.
Cosco said MRDC provides the company the opportunity to enter into another profitable business within the renewable energy sector.
“This acquisition will be an addition to the emerging renewable energy portfolio of Cosco Capital as well as to its entire operating segment, generating more income for the company,” it said.
Further, the move will enhance Cosco’s sustainability profile, demonstrating a commitment to environmental responsibility while contributing to the country’s overall economic development.
Cosco last March formalized its renewable energy venture with a P552-million investment for a majority stake in Catuiran Hydropower Corp., a company engaged in the business of building, constructing, operating and maintaining power plant.
Catuiran operates an eight-MW hydropower plant in Naujan, Oriental Mindoro, which is covered by a renewable energy service contract with the Department of Energy.
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