Tokai Corp. will increase its stake in Repower Energy Development Corp. (REDC), a subsidiary of Pure Energy Holdings Corp., to 20.1 percent.
Tokai, which was an anchor investor to REDC’s initial public offering (IPO) by purchasing a 10-percent stake, will purchase an additional 65.1 million shares.
The shares will be bought at P7.47 apiece, which was based on the average daily volume-weighted average price from January 1 to 31.
Tokai will have a seat in REDC’s board as result of this additional investment. This investment, the company added, is part of its 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 it shall create synergy for both of us in developing projects locally and internationally,” said REDC President Eric Peter Y. Roxas.
“This additional capital shall serve as fuel for our expansion plans as we look to build a presence in markets we have yet to serve.”
Tokai is the consolidated subsidiary of Tokai Holdings Corp., a Japan-listed conglomerate engaged in the energy business, such as the sale of liquefied petroleum gas.
Primarily known as a developer of run-of-the-river hydropower plants, REDC recently completed the development of its 5.8 megawatt (MW) Tibag plant and 1.4 MW Lower Labayat plant in Quezon. These two plants are expected to increase REDC’s overall power generation capacity by 50 percent.
Two more plants are currently under construction, with the 15 MW Cabanglasan plant in Bukidnon expected to be commissioned ahead of schedule in 2025.
REDC raised some P1 billion from its IPO last July 2023. The company said it will use the proceeds to fund the equity portion of its hydropower projects, the development and acquisition of renewable energy projects and operating and for its working capital requirements.
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