MRC Allied inks MoU with PHL firm Uni Solar

As published on BusinessWorldOnline

FOR THE THIRD TIME in about a month, MRC Allied, Inc. has entered in a memorandum of understanding (MoU) with a company involved in renewable energy projects.

In a disclosure to the stock exchange on Wednesday, MRC Allied said it had executed the latest MoU with Uni Solar, Inc., a Philippine-based company involved in the design, distribution, manufacturing and sales of solar power products, especially in solar photo voltaic (PV) for rooftops.

The listed company said the purpose of the discussions is to confirm both parties have an interest in developing solar PV rooftop projects in the Philippines, as identified by Uni Solar.

The MoU calls for MRC Allied to conduct due diligence for a year after the signing of the memorandum. The due diligence is meant to allow the listed company to make a decision to pursue a solar rooftop project with Uni Solar. The parties are bound by the terms and confidentiality while the MoU is in force and within one year thereafter.

The MoU followed a similar deal between MRC Allied and Chinese firm Guangdong Power Engineering Co., Ltd. (GPEC) on July 27, 2017 to look into renewable energy projects in the Philippines that have been identified by the local company. On July 6, 2017, MRC Allied entered in an MoU with Merge Energy and Environment Corp. (MEEC).

In June, MRC Allied announced an ambitious target of putting up at least 1,000 megawatts of renewable energy in the next five years.

Company officials told stockholders during their annual meeting that the move had been timed as demand for electricity is rising. It also cited the government’s increasing target for renewable energy capacity and the opportunity to buy existing power plants.

On Wednesday, shares in MRC Allied fell 7.35% to P0.315 each.