Megawide Construction Corp. is receiving cash and shares of stock from an affiliate in exchange for the P9.4 billion in cash advances it extended in 2016 to its parent company, Citicore Holdings Investment, Inc. (CHII), and sister company, Citicore Power Inc. (CPI).
Both Megawide and Citicore Power are subsidiaries of Citicore Holdings, according to the Philippine Stock Exchange (PSE).
“Out of the total, P4.69 billion is due from CHII, while the remaining P4.73 billion is from CPI—both figures inclusive of the principal amount and accrued interest income,” Megawide told the PSE.
Megawide signed two separate agreements to settle the advances.
Under the agreements, the transaction will have two components: an upfront cash payment of P3.5 billion, and the remaining P5.9 billion to be settled through the assignment of shares in Citicore Renewable Energy Corp. (CREC) to Megawide.
“The cash inflow will be used directly to pay down a portion of our outstanding debt, while the ownership of CREC shares will offer immediate earnings accretion and serve as currency for future value realization,” Edgar Saavedra, Megawide chairman and chief executive officer, said in the PSE disclosure.
Megawide added that, based on the initial proposed valuation methodology using the 90-day volume-weighted average price (VWAP) of CREC shares as of the last trading day of August 2025, the assignment will involve approximately 1.47 billion shares—equivalent to around a 13 percent stake in CREC.
“The final share price and the final number of shares to be involved, however, will be agreed upon by both parties and will be subject to validation by external independent parties, regulatory approvals, and reasonable market movements,” Megawide said.
Saavedra described the settlement as “good timing,” noting that the group’s investment in the power business is beginning to yield results.
“From the early capital we infused into the platform, it has already produced two publicly listed entities, currently with a combined market capitalization of approximately P37.0 billion—attributable to our respective shares in both companies—and with very strong growth prospects. Management deems it appropriate to close out the advances and allow us to focus on Megawide’s growth agenda anchored on construction, real estate, and infrastructure,” Saavedra said.
“We are very excited for this pivotal shift as we strategically rebuild and recreate shareholder value for Megawide. To complement this financial management program, we are finalizing several initiatives and negotiating critical projects that will provide us with sustainable income streams in the years ahead, further driving shareholder value,” he added.
