Megawide Raises $81 Million from Sale of CREC Stake

Megawide Construction Corp. has successfully raised approximately P4.5 billion ($81 million) through the sale of a nine-percent stake in Citicore Renewable Energy Corp. (CREC). The transaction, completed on June 26, involved the sale of 1.004 billion shares and is part of Megawide's strategy to reduce debt and fund expansion initiatives.

While the identity of the buyer has not been disclosed, reports indicate that the Government Service Insurance System (GSIS) was involved in the transaction, marking Megawide's exit from Citicore. Edgar Saavedra, Chairman and CEO of Megawide, stated that the sale aligns with the company's objective to realize value from its stake in CREC while also welcoming a strong partner for the renewable energy firm.

“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.”Edgar Saavedra, Chairman and CEO

The proceeds from the sale are earmarked for two primary purposes: funding the expansion of Megawide's precast operations and reducing its debt load. Saavedra elaborated on the company’s ongoing deleveraging program, noting that they have already reduced their debt by P6 billion ($108 million), bringing their short-term borrowings down to P12 billion ($216 million) as of the end of March 2026.

“On the balance sheet side, we have programmed to further reduce our short-term debt to a comfortable level, thus enhancing our liquidity position and also generating savings on interest expenses in the process.”Edgar Saavedra, Chairman and CEO

Megawide anticipates further reductions in short-term debt, projecting it to decline to around P10 billion ($180 million) by the end of June. This reduction is expected to yield annual interest expense savings of approximately P250 million to P300 million ($4.5 million to $5.4 million).

Following the announcement of the stake sale, shares of Megawide saw a positive response, rising by nine centavos, or 2.25 percent, to close at P4.09 ($0.073) each. This performance outpaced the benchmark Philippine Stock Market index, which gained 1.02 percent on the same day.