Citicore raises $89m Billion from CREIT shares sale to SMIC

SMIC acquires a 28.79% stake in CREIT.

Citicore Renewable Energy Corporation (CREC) and its subsidiary Citicore Solar Tarlac 1 secured nearly $89m (PHP5b) from the sale of shares to conglomerate SM Investment Corporation (SMIC) equivalent to 28.79% interest in the real estate investment trust Citicore REIT.

In a disclosure, CREC said a total of 1,884,374,000 shares priced a (PHP2.6534) per share were sold to SMIC.

“We believe that the SM group’s entry and investment into CREIT and the partnership with CREC unlocks potential synergies given the energy requirements of the SM group,” said CREC President and CEO Oliver Tan.

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Proceeds from the sale will be used to support the development of Citicore’s 1,583 megawatts of ready-to-build/under-construction solar power projects in eight sites.

CREC will remain the single largest stakeholder in Citicore REIT with a 32.88% interest.

$1 = PHP56.18