Megawide Construction Corp. has completed the sale of its remaining 9-percent stake in Citicore Renewable Energy Corp. (CREC), raising about P4.5 billion as the engineering and infrastructure firm accelerates debt reduction while funding its next phase of expansion.
The transaction, completed on June 26, involved the sale of more than 1 billion CREC shares through several tranches, marking Megawide’s full exit from the listed renewable energy company.
Chairman and Chief Executive Officer Edgar Saavedra said the divestment is part of the company’s broader strategy to unlock value from its investment while strengthening its financial position.
“The transaction is consistent with our intent to realize the value of our stake in CREC while welcoming a strong strategic partner for the company,” Saavedra said. “The proceeds will fund our precast expansion and further reduce debt, strengthening our balance sheet and improving liquidity.”
The sale comes as Megawide presses ahead with a balance sheet overhaul, prioritizing lower leverage after years of aggressive investments in infrastructure and construction.
The company has already trimmed its debt by P6 billion, reducing short-term borrowings to P12 billion as of end-March. That figure is expected to decline further to around P10 billion by the end of June, translating into estimated annual interest savings of P250 million to P300 million.
Beyond improving cash flow, the lower debt load gives Megawide greater financial flexibility as it expands its precast concrete business, a segment that supports the company’s push for faster and more cost-efficient construction.
The CREC exit also reflects a broader trend among listed conglomerates and infrastructure firms to monetize mature investments and recycle capital into core businesses, particularly as elevated interest rates continue to raise financing costs.
With fresh liquidity from the transaction and a lighter debt burden, Megawide appears to be shifting its focus from portfolio investments back to its engineering and infrastructure operations, positioning itself for growth while strengthening its balance sheet against an uncertain economic backdrop.
