RASLAG CORP. is in talks with a Hong Kong-based company for a potential partnership, the Nepomuceno-led renewable energy firm said on Tuesday.
In a disclosure to the stock exchange, the listed solar energy developer said it is in a preliminary discussion with the foreign company to explore a partnership in the energy sector.
Raslag did not provide more details on the partnership and the venture they are planning to enter into.
“Appropriate disclosures shall be made as soon as the details thereof are firmed up and/or definitive agreements are entered into,” the company said.
Asked to comment, Mark V. Santarina, a senior trader at Globalinks Securities and Stocks, Inc., said that the shares in the company have been trading with a low volume.
“Raslag’s stock has experienced a prolonged period of thin trading volume. Despite today’s increase in stock’s value, the accompanying trading volume has remained relatively subdued,” Mr. Santarina said in a Viber message.
He said that despite the “undoubtedly” positive development of the potential partnership, the discussion is still in the early stages.
In April, the company’s board approved plans to obtain a loan from the Bank of the Philippine Islands amounting to P1.2 billion to fund the construction and development of the 35.159-megawatt Raslag-4 solar plant in Magalang, Pampanga.
The company was also given a go-signal to borrow P250 million from the bank to bridge the partial financing of the land and acquisition for the Raslag 6 solar farm.
“While Raslag’s focus on renewable energy holds potential, investors may be awaiting more substantial progress or milestones before fully committing to the stock, given the evolving dynamics in the market,” Mr. Santarina said.
To date, the company has installed 41.198 megawatt-peak (MWp) of commercially operating plants. About 36.646 MWp are under construction, apart from proposed projects with a capacity of around 103 MWp.
At the local bourse on Tuesday, shares in the company went up by 10 centavos or 7.75% to close at P1.39 apiece. — Sheldeen Joy Talavera