Megawide raises P4.5 billion from sale of stake in CREC

MANILA, Philippines – Megawide Construction Corp. has raised about P4.5 billion from the sale of its remaining 9-percent stake in Citicore Renewable Energy Corp. (CREC), with proceeds earmarked for expansion and debt reduction efforts.

The construction and engineering company led by tycoon Edgar Saavedra said on Friday that it completed the monetization of its CREC investment on June 26 through several tranches involving the sale of 1.004 billion shares.

READ: Megawide Q1 net income jumps 26% to P265M

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The company said the move formed part of its strategy to “value-realize” its investment in CREC while bringing in a “suitable and strong partner” for the renewable energy firm.

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“This is also aligned with our overarching delivery and de-leveraging initiative, as proceeds will be used to fund our precast expansion and reduce debt to strengthen the balance sheet and improve liquidity, respectively,” said Saavedra.

Megawide earlier announced that it had begun reducing its debt load, particularly short-term obligations that weighed on financing costs. It said the goal was to bring short-term debt down to a more manageable level while generating savings from lower interest expenses.

READ: Megawide raises P1.1B from peso fixed-rate notes issuance

Megawide said it had already trimmed P6 billion in debt, reducing short-term borrowings to P12 billion as of end-March 2026. The figure is expected to decline further to around P10 billion by end-June this year.

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The lower debt burden is also expected to generate annual savings of around P250 million to P300 million in interest expenses, according to the company.

Megawide has been pursuing a deleveraging strategy alongside efforts to expand its precast business, one of its key growth areas as it continues to participate in large-scale infrastructure and construction projects in the country.

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The company is known for its involvement in major public infrastructure projects, including the development of the Mactan-Cebu International Airport, the Parañaque Integrated Terminal Exchange and the construction of the Clark International Airport. INQ

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