Pertamina to Acquire 20% Stake in Citicore Renewable Energy for $118 Million
PT Pertamina, the Indonesian state-owned oil and gas giant, has agreed to purchase a 20% stake in Citicore Renewable Energy Corp., a Philippine tycoon Edgar Saavedra’s company, for 6.7 billion pesos ($118 million). The acquisition is part of a broader plan to fund the expansion of Citicore’s renewable energy projects across the Philippines. Pertamina Power, a subsidiary of PT Pertamina, will acquire approximately 2.2 billion new shares at 3 pesos each, securing a seat on the company’s board.
Capitalizing on Renewable Energy Growth
The funds raised from the deal will significantly contribute to Citicore Renewable Energy’s ambitious goal of delivering 5 gigawatts of solar capacity within the next five years. This is part of the company’s larger vision to accelerate its renewable energy footprint amid the Philippine government’s push for clean energy. Citicore Renewable Energy, which went public in a 5.6 billion peso initial public offering (IPO) last year, plans to invest 180 billion pesos to meet its capacity expansion goals.
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Partnership Extends Reach in Southeast Asia
Through this partnership, Pertamina Power will gain access to Citicore Renewable Energy’s expertise in renewable energy development, including engineering, procurement, and construction. Additionally, Pertamina’s stake allows Citicore to explore opportunities in Indonesia and the broader Southeast Asian market. This investment marks a pivotal moment in Citicore’s growth strategy, as the company looks to expand its renewable energy initiatives beyond the Philippines.
This move underscores the increasing cross-border collaboration in the renewable energy sector, with both companies poised to benefit from shared expertise and a growing demand for clean energy in the region.
