Repower expands hydro business

MANILA, Philippines — Repower Energy Development Corp. (REDC) is boosting its hydropower business through the acquisition of shares in Taft Hydroenergy Corp. (THEC).

In a disclosure, REDC said the company, along with Tokai Corp. and  South East Energy Corp., is acquiring THEC for P3.93 billion.

The acquisition also covers THEC’s 15.93-megawatt Tubig Hydropower Plant located in the Visayas.

The transaction also includes a P1.1-billion loan.

REDC, along with the other firms, executed the share purchase agreement on May 28.

Under the transaction, REDC will acquire 520 million shares in THEC for P1.57 billion.

The acquisition will further grow REDC’s portfolio of operational hydropower plants.

“Upon conclusion of this transaction, the new asset will be the 10th operational hydropower plant of the company,” REDC said.

The additional plant will increase REDC’s operational capacity by around 45 percent.

It will also contribute and increase the firm’s income and cash flow.

REDC is engaged in the development of run-of-river hydropower projects.

As part of its growth plans, the company is acquiring both green field projects and existing hydropower plants.