Japanese firm to double stake in REDC,Philippines

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Japanese conglomerate Tokai Corp. will double its equity exposure in Repower Energy Development Corp. (REDC), a subsidiary of Pure Energy Holdings Corp.

With an existing 10 percent stake, Tokai said it would buy an additional 65.1 million shares from REDC, increasing its total interest to 20.1 percent.

The shares will be bought at P7.47 apiece, based on the average daily volume-weighted average price in January.

'Tokai's additional investment in REDC signifies the strengthening partnership between the two companies, will enhance the corporate value of REDC and it shall create synergy for both of us in developing projects locally and internationally,' REDC president and CEO Eric Peter Roxas said.

The additional investment will entitle Tokai to another seat in the energy firm's board.

'This additional capital shall serve as fuel for our expansion plans as we look to build a presence in markets we have yet to serve,' Roxas said.

Tokai, with an annual revenue of 180 billion yen, operates 39 subsidiaries and 10 affiliates with investments across retail, commercial and industrial markets.

Meanwhile, REDC is known as a developer of run-of-the-river (ROR) hydropower plants, such as the 5.8 MW Tibag plant and 1.4 MW Lower Labayat plant in Quezon. Both projects are expected to increase REDC's overall power generation capacity by 50 percent.