Home Top News Cosco acquires 60% stake in Catuiran Hydropower

Cosco acquires 60% stake in Catuiran Hydropower

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COSCO Capital, Inc. has finalized its acquisition of 60% outstanding shares in Catuiran Hydropower Corp., operator of the eight-megawatt hydroelectric power plant in Naujan, Oriental Mindoro, the retail holding company announced on Tuesday.

The listed company has acquired a total of 360 million shares in Catuiran at a price of P1.533 per share, it said in a stock exchange disclosure.

Cosco has received a letter from the Philippine Competition Commission, saying “the transaction is not subject to compulsory notification, thus clearing the path for the parties to close the transaction.”

“The acquisition of Catuiran will provide an opportunity for Cosco Capital, Inc. to engage in another profitable line of business while contributing to the country’s economic development, which aligns with the government’s thrust toward creating more sustainable energy sources,” the company said.

The company has paid to Union Energy Corp. in exchange for 60% of its shareholdings in Catuiran, Cosco said.

“The total consideration is below 10% of Cosco’s total book value as of December 31, 2023,” the company said.

Incorporated in 2012, Catuiran is primarily engaged in the business of building, constructing, operating, and maintaining power plant.

Cosco has a portfolio of businesses in retail, real estate, wine and liquor, and oil and mineral.

At the stock exchange on Tuesday, shares of the company climbed by P0.04 or 0.82% to close at P4.94 each. — Sheldeen Joy Talavera

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