First Gen Corp. said its director Manolo Michael de Guzman resigned from its board Friday, Sept. 11, following the divestment of 715.9 million First Gen shares by Valorous Asia Holdings Pte. Ltd., an investment vehicle wholly owned by global private equity firm KKR.
The shares represent about 19.9 percent of First Gen and are valued at roughly P19.3 billion based on the company’s current market price, making the transaction a sizable change in the shareholder base of the Lopez Group’s power generation arm.
Valorous, a Singapore-registered investment holding company, accumulated its First Gen stake through KKR investments in 2020 and 2021.
De Guzman’s departure comes as KKR unwinds a substantial portion of its investment in First Gen after previously seeking to increase its stake.
KKR had proposed acquiring an additional 8.43 percent stake from First Philippine Holdings Corp., which held 67.84 percent of First Gen. The plan was to be followed by a voluntary tender offer for the company’s 11.67 percent public float, with the eventual goal of delisting First Gen.
First Holdings rejected the proposal, saying it undervalued the power generator.
The latest share sale marks another shift in KKR’s relationship with First Gen, while First Holdings remains the controlling shareholder.
For investors, the transaction puts First Gen’s ownership structure and valuation in focus. The company is one of the Philippines’ major power producers, with interests in natural gas, geothermal, wind, solar, and hydroelectric generation.
With nearly one-fifth of First Gen shares changing hands, de Guzman’s resignation comes against the backdrop of a significant reshaping of the company’s shareholder base.
