Corporate News

MRC Allied plans foray into renewable energy

Posted on August 03, 2016

PUBLICLY LISTED MRC Allied, Inc. is more than tripling its capital, as the property developer plans to expand its renewable energy portfolio.

In a disclosure to the Philippine Stock Exchange, MRC said its board of directors in a meeting on Tuesday has approved a plan that includes an increase in its authorized capital to P5 billion from the current P1.5 billion, as well as the acquisition of renewable facilities “on its own or through its subsidiaries.”

A subsidiary Menlo Renewable Energy Corp. is developing a 60-megawatt solar project in Naga, Cebu to energize the parent firm’s New Cebu Township One, an integrated residential, commercial, industrial and recreational project.

“We plan to diversify into hydroelectric and solar power,” Jan Vincent S. Soliven, MRC corporate secretary told BusinessWorld in a phone interview.

He said the increase in capital is intended as additional funding for several renewable energy projects, but the company official stopped short of saying where the projects are and whether real estate would still comprise its core business.

Luis A. Limlingan, managing director of Regina Capital Development Corp., said the increase in stock capital might be perceived negatively, as it will dilute the existing shareholders. “Maybe in the long run it will deliver a better return in equity,” he told BusinessWorld.

Shares in MRC closed at P0.136, up 11.48% from Monday’s P0.122. -- Lucia Edna P. de Guzman