Lucio Co seals takeover of 2nd power plant in Nueva Vizcaya

Nueva Vizcaya map. INQUIRER FILES

Billionaire Lucio Co has completed the takeover of a second renewable energy firm this year via a P1.02-billion deal for a hydroelectric power plant in Nueva Vizcaya, joining other tycoons in the rapidly growing sector.

Cosco Capital Inc., Co’s listed supermarket, liquor and property holding company, bought all 9.18 million shares in Matuno River Development Corp. (MRDC) for P111.16 each.

The transaction price was below 10 percent of Cosco’s total book value as of June 30 this year, the company said in a regulatory filing on Tuesday.

READ: BIZ BUZZ: Lucio Co hops into RE bandwagon

This came after the Philippine Competition Commission confirmed that the deal was not subject to the agency’s compulsory notification requirement, as it was below the minimum P3.2 billion transaction value threshold.

“The transaction offers [Cosco] the opportunity to enter into another profitable business within the renewable energy sector,” Cosco 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.

Cosco first announced in July its acquisition of MRDC, the developer of the 8.66-megawatt (MW) Matuno River hydroelectric power plant.

The run-of-river facility is covered by a hydro power service contract with the Department of Energy.

It likewise represents the second renewable energy firm that Cosco acquired in less than a year.

In March, Cosco, which also owns grocery retail chain Puregold Price Club Inc., bought 60 percent of Catuiran Hydropower Corp. for P551.88 million.

Catuiran is the operator of an 8-MW hydropower plant in Oriental Mindoro.

Co joins other tycoons—the Zobel family through ACEN Corp., Edgar Saavedra through the Citicore Group, the Aboitiz family through Aboitiz Power Corp., and Manuel V. Pangilinan through MGen Renewable Energy Inc.—in the robust renewable energy market.

Cosco’s energy and minerals segment generated P98 million in earnings and P172 million in revenues following its takeover of Catuiran.

Overall, recovering consumer demand buoyed the first-semester net income of Cosco by 15.5 percent to nearly P7 billion as its grocery business grew.

Revenues during the period likewise reached P106.4 billion, up by 8.4 percent.

Apart from Puregold, Cosco also operates S&R Membership Shopping Club. These two businesses contributed a combined 71 percent to the group’s total net income.

Meanwhile, Cosco’s commercial real estate segment recorded a 5-percent increase in earnings to P486 million due to the “increased level of economic activities.”