Citicore Power declares property dividends
Citicore Renewable Energy Corp. (CREC) disclosed that its majority shareholder, Citicore Power Inc. (CPI), has declared property dividends to streamline the ownership structure of the listed renewable energy developer while retaining majority control over the company.
In a disclosure on Monday, CPI said it would distribute its entire stake in CREC to its two shareholders—Citicore Holding Investments Inc. (CHII) and Purple Seed Capital Holding Inc. (PSCHI), through property dividends.
Under CPI’s current ownership structure, CHII holds 80 percent of CPI’s common shares, while PSCHI owns the remaining 20 percent. This shareholding ratio will determine the allocation of the property dividends.
According to CREC’s latest general information sheet, CPI owns 5.58 billion common shares in CREC.
Following the distribution, CHII will directly own 4.47 billion CREC shares, equivalent to 40.03 percent of the company—while PSCHI will directly hold 1.12 billion shares, representing 10.01 percent.
CHII is owned by CREC chair Edgar Saavedra, while PSCHI is owned by CREC president and CEO Oliver Tan.
After the transaction, Saavedra and Tan will collectively maintain majority ownership of CREC and its subsidiaries.
Tan said the move would not result in a change in control and would ensure continuity in governance, leadership and strategic direction across the group.
“We remain fully aligned in our strategic direction and fully committed to sustaining CREC’s momentum in the renewable energy sector. This initiative strengthens our shareholders’ ability to support CREC’s continued expansion, while preserving stability and transparency across our operations,” he said.
Project pipeline
CREC said the property dividend declaration would not affect the company’s ongoing operations or project pipeline.
The company also stressed that the transaction would not impair the ability of CREC and its subsidiaries to meet obligations under existing loan agreements.
The payment of the property dividends remains subject to the completion of required approvals and consents from government agencies and relevant third parties.
CREC is a pure-play renewable energy company engaged in the development and operation of solar, hydro and wind projects in the Philippines.
The company also participates in power project development and retail electricity supply and is the sponsor of Citicore Energy REIT Corp., the country’s first renewable energy real estate investment trust.
