Megawide to Receive P9.4B as Settlement of Advances

Engineering and infrastructure company Megawide Construction Corp. is beefing up its cash position, with the company set to receive P9.4 billion from parent Citicore Holdings Investment Inc. (CHII) and sister company Citicore Power Inc. (CPI) as settlement of advances.

- Richmond Mercurio

In a stock exchange filing, Megawide said it signed separate agreements to settle advances due from CHII and CPI.

Of the total P9.4 billion, P4.69 billion is due from CHII, while the remaining P4.73 billion is from CPI.

"The cash inflow will be used directly to pay down a portion of our outstanding debt, while the ownership of Citicore Renewable Energy Corp. (CREC) shares will offer immediate earnings accretion and serve as currency for future value realization," Megawide chairman and CEO Edgar Saavedra said.

Megawide said the transaction would have two components based on the signed agreements.