Cosco Capital completes acquisition of Matuno River Dev’t Corp.
LUCIO L. Co-led Cosco Capital, Inc. announced on Thursday the completion of its acquisition of Matuno River Development Corp. (MRDC), expanding its presence in the renewable energy sector.
In a disclosure to the stock exchange, Cosco Capital said it acquired 9.18 million shares of MRDC. The company did not disclose the price.
“The intended transaction offers Cosco Capital the opportunity to enter into another profitable business within the renewable energy sector,” the listed company said.
“This strategic move will enhance its sustainability profile, demonstrate a commitment to environmental responsibility, while contributing to the country’s overall economic development,” it added.
MRDC is the developer of the 8.66-megawatt Matuno River Hydroelectric Power Plant in Bambang, Nueva Vizcaya. The power plant is covered by a hydropower service contract with the Energy department.
The power plant draws energy from the Matuno River, a tributary of the Magat Dam.
“This proposed acquisition will be an addition to the emerging renewable energy portfolio of Cosco Capital, Inc., as well as to its entire operating segment, generating more income for the company,” Cosco Capital said.
Cosco Capital said the shares will be paid through issuance of checks.
It added that the proposed acquisition will be submitted to the approval of the Philippine Competition Commission, if applicable.
Cosco Capital finalized its entry into the renewable energy sector in March after acquiring a 60% stake in Catuiran Hydropower Corp. for P551.88 million.
Catuiran operates an eight-megawatt hydropower plant in Naujan, Oriental Mindoro. The plant is covered by a renewable energy service contract with the Energy department.
On Thursday, Cosco Capital shares rose by 0.22% or one centavo, closing at P4.59 apiece. — Revin Mikhael D. Ochave