REPOWER Energy Development Corp. on Monday said it had signed a deal to acquire a 16-megawatt (MW) hydropower plant on Samar Island in the Visayas for nearly P4.0 billion.
In a disclosure, Repower said the move forms part of its broader expansion strategy, as the acquisition would give the company its 10th hydropower plant and increase its operational capacity by approximately 45 percent.
Repower, Tokai Corp., and South East Energy Corp. signed a share purchase agreement (SPA) with Taft Hydro Energy on May 28 to acquire 100 percent, or 1.3 billion shares, of the latter's capital stock from Magis Energy Holdings Corp., the project's developer, at P2.16 per share.
“The total consideration for this transaction is P3.925 billion, payable upon closing under the SPA,” the disclosure said.
The transaction remains subject to regulatory approvals and the fulfillment of closing conditions.
Taft Hydro owns the 15.93-MW hydroelectric power plant located in Barangay San Rafael within the Samar Island National Park. Construction began in 2020, and the plant commenced operations in October 2022.
Repower said it would receive 520 million shares and assume P440 million in debt as part of the acquisition. Tokai will also receive 520 million shares, while South East Energy will acquire 260 million shares for P785 million.
Repower shares rose 8.96 percent, or P0.60, on Monday to close at P7.30 apiece.
