Repower Energy Development Corp. said Thursday that Japanese firm Tokai Corp. has expressed the intention to acquire another 10 percent of the listed renewable energy company.
Tokai has acquired in July a total 65 million shares of Repower, equivalent to 9.99 percent of the listed company.
“As a strategic investment, Tokai now intends to further acquire from Pure Energy Holdings Corp. an additional sixty five million, one hundred thousand (65,100,00) common shares of” Repower, Tokai said in a letter to the Securities and Exchange Commission.
The proposed Tokai transaction, coming within 12 months of the initial purchase of 9.99 percent that raises its stake beyond 15 percent, will trigger a mandatory tender offer. Note, however, that Repower has a foreign ownership limit of 40 percent.
Financial details of latest share acquisition weren’t immediately disclosed but it will be the basis of a tender offer.
Shares of Repower, which has run-of-rive hydroelectric power plants in Laguna, Quezon and Camarines Sur, last traded at P7.29 each, which sets its market capitalization at P4.74 billion.
