MUSX Corp., a listed semiconductor maker, has acquired a company involved in biomass production and waste recovery in line with its diversification into renewable energy.

In a filing to the Philippine Stock Exchange on Tuesday, MUSX said it bought 51 percent of Total Waste Management Recovery System Inc., a domestic firm engaged in building, operating and managing waste recovery systems.  

MUSX has committed to a cash infusion of P25 million to be used as the company’s working capital on top of its acquisition cost, considered as “minimal” by MUSX president and chief executive officer Antonio Tiu in a phone interview yesterday.

Total Waste Management is in the process of setting up its initial facility in Bulacan, north of Metro Manila.

Revenues are generated by charging “dumping fees” for waste, the processing of which creates biomass, a renewable energy source. This process also produces organic fertilizer that will be used to support activities of AgriNurture Inc., a listed agribusiness firm also led by Tiu.

“Revenue-wise, this will be a significant contributor for MUSX by the fourth quarter of the year,” Tiu said.

MUSX recently obtained stockholders approval to change its name to Greenergy Holdings Inc. to reflect its new business direction.

At present, earnings of MUSX come from its semiconductor unit, which allowed it to book sales of P14.72 million and a net income of P776,929 during the first quarter.

Tiu said MUSX will likely spin off its semiconductor business via an initial public offering to raise funds for its expansion.

MUSX shares declined 2.78 percent to P0.07 each on Tuesday’s trading.