Cosco board plans to acquire 60% stake in Catuiran Hydropower 

Cosco board plans to acquire 60% stake in Catuiran Hydropower 

RETAIL holding company Cosco Capital, Inc. has announced plans to acquire 60% of the outstanding shares in Catuiran Hydropower Corp., operator of the eight-megawatt hydroelectric plant in Naujan, Oriental Mindoro.

In a stock exchange disclosure on Tuesday, Cosco Capital said its board of directors approved the proposal at a meeting on Dec. 14.

The acquisition signals Cosco Capital’s strong interest in the renewable energy sector.

Earlier this year, the company announced that it was looking to venture into the renewable energy space, seeing the industry as a profitable portfolio in the medium and long term.

The listed company will acquire a total of 360 million shares, representing 60% of the outstanding shares of Catuiran, Cosco Capital said, without disclosing the amount of the transaction. 

The company added that the acquisition is below 10% of its total value.

For the third-quarter period, Cosco Capital reported an attributable net income of P1.82 billion, up by 1% from the P1.81-billion profit in the same period last year, driven by higher revenue for the period.

The company recorded a gross revenue of P52.89 billion for the third quarter, marking a 7.2% increase from the P49.36 billion recorded previously.

Incorporated in 1988, Cosco Capital has a portfolio of businesses in retail, real estate, wine and liquor, and oil and minerals.

At the stock exchange on Tuesday, shares in the company closed two centavos or 0.44% higher at P4.59 per share. — Ashley Erika O. Jose