Japanese firm Tokai hiking stake in REDC

By Alena Mae S. Flores – February 9, 2024, 8:50 pm
from manilastandard.net

Japanese conglomerate Tokai Corp. plans to increase its stake in listed Repower Energy Development Corp. by at least 15 percent through a block sale.

REDC said in a disclosure to the Philippine Stock Exchange that it received communication from Tokai, notifying its intention to acquire at least 15 percent of the corporation’s equity securities.

Tokai initially subscribed to 65 million common shares in REDC, equivalent to 9.99 percent of its total outstanding capital stock in July 2023.

“As a strategic investment, Tokai now intends to further acquire from Pure Energy Holdings Corp. an additional 65,100,000 common shares in REDC, which will be implemented by way of a block sale through the facilities of the PSE. Once implemented, such acquisition will result to Tokai’s ownership of 20.01 percent of the total outstanding capital stock of REDC,” Tokai said in a letter to the Securities and Exchange Commission.

Tokai is wholly-owned by Tokai Holdings Corp., a listed company in the Tokyo Stock Exchange. The principal business of the company is energy, including the manufacture and sale of liquefied petroleum gas, liquefied natural gas, high pressure gas and gas equipment.

REDC earlier said Tokai would participate in its planned initial public offering as an anchor investor.

“We are pleased on Tokai’s commitment to participate in our IPO as this is a testament to the market’s growing interest in our company,” REDC president and chief executive Eric Peter Roxas said.

“We look forward to taking advantage of the synergies available to us as a result of our partnership with Tokai, such as our expansion into the Japanese renewable energy market, specifically run-of-the-river hydropower projects where our expertise and Tokai’s reach in Japan will prove invaluable,” Roxas said.