First Gen Corp., the listed power generation arm of the Lopez Group, has finalized a deal to sell a 60 percent stake in its Batangas-based natural gas businesses to Prime Infrastructure Capital Inc., owned by tycoon Enrique Razon.
Under the agreement, Prime Infra will take majority control of key assets, including the 1,000-megawatt Santa Rita power plant, 500MW San Lorenzo, 450MW San Gabriel, and 97MW Avion facilities.
It will also acquire a majority interest in the proposed 1,200MW Santa Maria power plant and the Interim Offshore LNG Terminal. First Gen will retain a 40 percent stake across these ventures.
The agreement follows a term sheet signed in May and values the transaction at P50 billion, which Prime Infra will pay upon closing. First Gen is also eligible for additional earnout payments, contingent on the achievement of agreed-upon milestones.
The deal has since been cleared by the Philippine Competition Commission, whose primary mandate is to prevent anti-competitive agreements, abuse of market dominance, and anti-competitive mergers and acquisitions.
The transaction represents a strategic move by Prime Infra to deepen its footprint in the country’s energy sector. Razon’s group is known for large-scale infrastructure projects, including the Wawa Dam, and also holds control of Manila Water Co.
First Gen, a subsidiary of First Philippine Holdings Corp., remains a leading player in the clean energy space. Apart from natural gas, it generates electricity using geothermal, hydro, wind, and solar sources. The company’s total installed capacity stands at 3,668 megawatts, representing about 18 percent of the Philippines’ total generation.
The deal is expected to boost investment in gas infrastructure and energy reliability amid rising demand.
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