Citicore Renewable Energy Corp. (CREC) said on Thursday Indonesia’s state-owned Pertamina New & Renewable Energy (Pertamina NRE) has completed its 20 percent purchase of CREC’s stake for P6.7 billion, paid in cash.
The sale was sealed with a purchase agreement signed in Jakarta between CREC Chief Executive Officer (CEO) Oliver Tan and Pertamina NRE CEO, John Anis, witnessed by Energy Assistant Secretary Mylene Capongcol and Pertamina Director of Strategy and Business Development Salyadi Saputra, the company said in a press release.
The deal, announced in January, was valued at $120 million or P6.7 billion, where Pertamina subscribed to 2.23 billion CREC shares at P3 per share. CREC, in a regulatory filing, stated that the purchase was paid in cash.
The proceeds from the sale will be used to support CREC’s pipeline of renewable energy projects.
The Citicore Group currently operates solar PV (photo-voltaic) plants with a combined gross installed capacity of 287 megawatts (MW) in the Philippines. It aims to deliver five gigawatts within five years, with the first of these to be completed by the end of this year. CREC’s energy portfolio includes onshore wind projects with a combined total of 803 MW.
Four of these wind projects, totaling 543 MW, are in various stages of development, with 362 MW slated for delivery under the Philippine Department of Energy’s Green Energy Auction (GEA)-2.
The buy-in deal is Pertamina NRE’s first investment in the Philippines.
Meanwhile, CREC said that post-transaction, CREC and Pertamina NRE will jointly explore renewable energy investments in Indonesia, including the potential development of “solar and wind power projects and collaboration related to carbon credit development and trading.”
“To be a First-World Philippines powered by pure renewable energy, we must seek every opportunity to collaborate with the government as well as peers in the industry and beyond our borders. With Pertamina NRE, we can view the energy transition through a different lens and create responsive, collaborative solutions for clean energy in the Philippines and Indonesia,” Tan said.
“We are leading the charge in Indonesia’s renewable energy transition, and our partnership with Citicore, with their expertise and experience in RE development, is a way to elevate our capability in RE development, as well as a big step in accelerating our clean energy goals. In the same light, we are committed to supporting Citicore and the Philippines with our own expertise, technology, and best practices,” Anis added.
Following the completion of the purchase, CREC’s mother company, Citicore Power Inc., will have its stake reduced to 59.92 percent, while the publicly owned shares will be at 20.07 percent.