Japanese conglomerate Tokai Corp. is increasing its stake in Repower Energy Development Corp. (REDC) with the acquisition of 65.1 million common shares worth P486.3 million.
Tokai, an anchor investor in REDC’s initial public offering last year, said it would purchase additional 65.1 million REDC shares at P7.47 apiece. This will increase Tokai’s stake in REDC to 20.1 percent.
The price was based on REDC’s average daily volume-weighted price from Jan. 1 to 31, 2024.
REDC said the investment, to be finalized this week by way of a block sale at the Philippine Stock Exchange, would entitle Tokai to a REDC board seat.
This is part of Tokai’s initiatives to achieve carbon neutrality throughout its operations by 2050 and signifies confidence in REDC’s profitability and long-term growth potential.
“Tokai’s additional investment in REDC signifies the strengthening partnership between the two companies, will enhance the corporate value of REDC and will create synergy for both of us in developing projects locally and internationally,” said REDC president and chief executive Eric Peter Roxas.
“This additional capital will serve as fuel for our expansion plans as we look to build a presence in markets we have yet to serve,” he said.
REDC, a developer of run-of-the-river hydropower plants, recently completed the development of its 5.8-megawatt (MW) Tibag plant and 1.4-MW Lower Labayat plant in Quezon province.
The two plants are expected to increase REDC’s overall power generation capacity by 50 percent.
Two more plants are under construction, with the 15-MW Cabanglasan plant in Bukidnon province expected to be commissioned ahead of schedule in 2025.
Tokai is wholly-owned by Tokai Holdings Corp., a listed company in the Tokyo Stock Exchange. The principal business of the company is energy, including the manufacture and sale of liquefied petroleum gas, liquefied natural gas, high-pressure gas and gas equipment.
Tokai initially acquired a 10-percent stake during REDC’s maiden share offering.
REDC is a wholly-owned subsidiary of Pure Energy Holdings Corp., an investment holding company that engages in renewable energy generation and water system management and distribution.