Megawide to receive P9.4B from CHII and CPI as settlement of advances

​Megawide Construction Corp. (Megawide or the Company) signed separate agreements for the settlement of advances amounting to P9.4 billion, due from parent Citicore Holdings Investment, Inc. (CHII) and sister company Citicore Power Inc. (CPI). Out of the total, P4.69 billion is due from CHII, while the remaining P4.73 billion is from CPI – both figures inclusive of the principal amount and interest income accrued. 

Based on the agreements, the transaction will have two components – upfront payment of cash amounting to P3.5 billion and the balance of P5.9 billion via assignment of Citicore Renewable Energy Corp. (CREC) shares to Megawide.

“The cash inflow will be used directly to pay down a portion of our outstanding debt, while the ownership of CREC shares will offer immediate earnings accretion and serve as currency for future value realization,” said Megawide Chairman and CEO Edgar Saavedra.

Based on the initial proposed valuation methodology using the 90-day volume weighted average price (VWAP) of CREC shares as of the last trading day of August 2025, the assignment involves approximately 1.47 billion shares and equivalent to around 13% stake in CREC. The final share price and the final number of shares to be involved, however, will be agreed upon by both parties and subject to validation of external independent parties, regulatory approvals, and reasonable market movements.

“We believe that this is good timing as our investment in the power business is starting to bear fruit. From the early capital we infused in the platform, it has already produced two publicly listed entities, currently having a combined market capitalization of approximately P37.0 billion – attributable to our respective shares in both companies – and with very strong growth prospects. Management deems it appropriate to already close out the advances and allow us to focus on Megawide’s growth agenda anchored on construction, real estate, and infrastructure,” Saavedra explained.

“We are very excited for this pivotal shift as we strategically rebuild and recreate shareholder value of Megawide. To complement this financial management program, we are finalizing several initiatives and negotiating critical projects that will provide us with sustainable income streams in the years ahead, that will further drive shareholder value,” Saavedra stressed.

Megawide is among the most innovative engineering and infrastructure companies in the Philippines. Publicly listed since 2011, Megawide is the private partner of the Philippine Government for major public infrastructure projects such as the PPP for School Infrastructure Project Phases 1 and 2; the multi-year developments of Mactan-Cebu International Airport and the Parañaque Integrated Terminal Exchange; and the construction of Clark International Airport. In 2012, the company established Megawide Corporate Foundation, Inc., a non-profit organization focusing on social development projects.