Saavedra’s CREC to boost public stake ahead of P6.7-B Pertamina deal

Oliver Tan 
CREC president, CEO 

Tycoon Edgar Saavedra plans to reduce his stake in Citicore Renewable Energy Corp. (CREC) to maintain a diversified public ownership structure as the Pertamina Group, Indonesia’s largest state-owned firm, acquires a 20-percent stake.

In a detailed filing discussing the recent Pertamina investment, Citicore Renewable said controlling shareholder, Saavedra-led Citicore Power Inc., will sell 346.34 million shares to the public.

These could be worth about P1.04 billion when valued at Pertamina’s entry price.

Public float compliance 

This ensures compliance with the PSE’s minimum public ownership requirement of 20 percent.

The company said the public share sale will be completed prior to the investment of PT Pertamina Power Indonesia (PNRE), which is acquiring 2.23 billion new shares for P6.7-billion, or P3 per share. 

CREC shares were trading at P3.49 each on Monday, Jan 20.

Pertamina deal benefits

“The company will benefit from the proceeds of the transaction to contribute to the capital expenditure requirement in line with its 5GW [Gigawatt] project roadmap,” CREC said in the filing.

“Additionally, the company will gain the opportunity to partner with PNRE to develop renewable energy projects in Indonesia, allowing for the company’s potential expansion in the region. PNRE also gains access to the company’s unique expertise in project development, and engineering, procurement and construction, or EPC,” it added.

New shareholder structure

In the filing, CREC noted the share issuance to PNRE will be implemented within the first quarter of 2025. Citicore will own a 59.92-percent stake, PNRE will have 20 percent, and the public float will stand at about 20 percent.

About the author
Miguel R. Camus
Miguel R. Camus

Miguel R. Camus has been a reporter covering various domestic business topics since 2009.

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