Citicore executes share block sale for Indonesian firm entry

MANILA, Philippines — Citicore Power Inc. has completed its block sale of 153.74 million common shares in Citicore Renewable Energy Corp. (CREC), paving the way for the entry of Indonesian power firm Pertamina.

CREC, chaired by tycoon Edgar Saavedra, told the Philippine Stock Exchange (PSE) that it received a notice from its parent Citicore Power regarding the block sale.

The company said the transaction was among the conditions precedent in the closing of Pertamina unit PT Pertamina Power Indonesia’s (Pertamina NRE) acquisition of a 20-percent stake in CREC.

The value of the block sale was not immediately made available.

Earlier, the CREC board approved Pertamina NRE’s subscription to 2.23 billion unissued common shares of the company at P3 apiece, raising an estimated value of P6.7 billion.

The deal, which marked Pertamina NRE’s first investment in the Philippines, is targeted to be completed within the first quarter.

To remain compliant with the PSE’s minimum public float of 20 percent, CREC intends to sell about 346.34 million common shares to public investors.

Upon completion of these transactions, Citicore Power’s stake in CREC will decrease to 59.92 percent from 78.78 percent.

The entry of the Indonesian firm is expected to accelerate the development of CREC’s extensive pipeline of renewable energy projects across the country.

It will also enable CREC to develop projects in Indonesia, setting the stage for potential expansion in other countries across Southeast Asia.

“(Pertamina NRE’s) investment in CREC is a testament to the company’s track record and ability to ramp up its renewable energy pipeline from pre-development to construction to commercial operations,” CREC said.

CREC, a pure-play RE platform focused on and committed to the development of clean energy projects in the Philippines, wants to scale up its portfolio with a target of five gigawatts of green energy capacity by 2028.