MANILA - First Gen Corp said Thursday Philippines Renewable Energy will acquire up to 31.7 percent of its geothermal unit, Energy Development Corp through a tender offer.

The tender offer involves a minimum of 6.6 billion and a maximum of 8.9 billion common shares, representing 23.5 percent to 31.7 percent of EDC's total outstanding voting shares, First Gen told the stock exchange.

The bidder is offering a price of P7.25 per share, a 22.3-percent premium compared to EDC's 30-day average price of P5.93, First Gen said.

First Gen said it would keep a 60-percent controlling stake in EDC, adding the sale would deliver approximately P14 billion to the company.

"The tender offer provides First Gen with an opportunity to realize part of its investment in the country’s largest renewable energy company," the company said.

The transaction is a "clear vote of confidence in EDC’s clean energy platform from two of the world’s largest infrastructure investors," said First Gen and EDC Chairman Federico R. Lopez

"This will most definitely be a transformational period in the company’s 40-year history," he said.

Upon completion of tender offer, Philippines Renewable Energy will be indirectly held by a consortium funds managed by Macquarie Infrastructure and Arran Investments, an affiliate of GIC Pte Ltd.

GIC has over $100 billion in assets under management and is Singapore's Sovereign Wealth Fund. It has invested in the Philippines in the past through an acquisition of shares in Century Pacific Food.

MIRA is one of the world's largest infrastructure asset managers. It manages a $500 million in infrastructure funds spread across 6 investments in the country since 2012. -- with reports from Vivienne Gulla and Warren de Guzman, ABS-CBN News