MANILA – Global investment firm KKR said Monday it is acquiring 11.9 percent stake of independent power producer First Gen Corp.
KKR, through Valorous Asia Holdings an entity owned by its investment funds, will pay P22.50 per share to buy 427,041,291 million shares in First Gen on July 1, representing a total investment of P9.6 billion or $192.2 million.
First Gen, which is one of the Philippines’ largest power firms, produces renewable energy through its geothermal, hydroelectric, wind and solar power plants and uses indigenous fuel sources such as natural gas.
It is a subsidiary of First Philippine Holdings Corp, which is controlled by the Lopez family.
David Luboff, Partner and Head of Asia Pacific Infrastructure at KKR, said the company was "thrilled to make this infrastructure investment in the Philippines in First Gen."
"We have long viewed First Gen as an exceptional business with a high-caliber leadership team, and we have great respect for the Lopez family for building this strong, well-established company. This is an exciting and further milestone for KKR’s Asia Pacific infrastructure business, and we are pleased to have this opportunity to be an investor in First Gen able to positively engage with the company’s management team and the Lopez family as helpful in the future,” Luboff said.
Federico Lopez, Chairman and Chief Executive Officer of First Gen, said, the power firm welcomes "the news of KKR’s successful tender for First Gen shares."
"It’s especially exciting given the accelerating transition we all need to make toward a decarbonized future and we look forward to engaging with a world class global investor, such as KKR, as we navigate the journey ahead as partners,” Lopez said.
First Gen has 3,492 megawatts of installed capacity in its portfolio, which accounted for 21 percent of the Philippines’ gross power generation in 2019, the company said.
KKR had earlier invested in Metro Pacific Hospitals and in Voyager Innovations.
Shares of First Gen rose 1.78 percent to close at P22.90 on Monday.
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KKR, First Gen, First Philippine Holdings, renewable energy, Lopez Group, clean energy