Megawide exits Citicore Renewable with P4.5B stake sale to GSIS
What's the deal? Megawide Construction Corp., controlled by tycoon Edgar SaavedraDealroom has a profile for this one. Try Dealroom →, raised P4.5 billion by selling its stake in Citicore Renewable EnergyDealroom has a profile for this one. Try Dealroom → Corp. (CREC) to the state-run Government Service Insurance SystemDealroom has a profile for this one. Try Dealroom → (GSIS). The secondary sale covered about 1 billion shares, or a 9% stake, executed over several tranches.
What's the endgame? The deal completes Megawide's exit from the clean power developer, which Saavedra also chairs. It hands GSIS a key holding in a listed renewable platform while giving Megawide cash to cut debt and grow its precast concrete business.
Why now? The transaction is part of a broader recycling of renewable-energy holdings among Philippine institutions. GSIS built its position through secondary-market purchases from Megawide across May and late June 2026, crossing the 5% disclosure threshold before reaching 7.48%.
The numbers: Megawide expects short-term debt to fall to around P10 billion by end of June 2026, from P12 billion at end of March 2026, saving an estimated P250 million to P300 million in annual interest. It reported a 26% rise in Q1 2026 net income to P265 million after cutting nearly P6 billion in short-term debt.
"The transaction is consistent with our intent to value-realize our stake in CREC, at the same time welcoming a suitable and strong partner for CREC," Saavedra said. He added that proceeds will "fund our precast expansion and reduce debt to strengthen the balance sheet and improve liquidity."
Megawide shares rose 1.25% to P4.05 on the news, while CREC slipped 0.22% to P4.49.
The signal: This is a liquidity and capital-allocation move, not a fresh project financing or a transformational merger. It shows CREC drawing serious domestic institutional interest — and the shareholding still being reshaped among major players — even as Megawide monetises its green exposure to shore up its core construction business.
Read more: Insider PH
Cover image: BulacanSol solar farm, Philippines. CC BY-SA 4.0, FBenjr123 / Wikimedia Commons.
