The leadership dispute within Lopez Inc. has intensified, with controlling shareholders aligned with Eugenio “Gabby” Lopez III flagging what they describe as a “third poison pill” tied to the leadership of Federico “Piki” Lopez at First Gen Corp..
The group said the provision—unlike earlier undisclosed arrangements—surfaced in a mid-April public filing by First Gen. It involves standby letters of credit issued by BDO Unibank Inc., which include covenants that could trigger a loan default if Piki or a designated successor is removed from key leadership roles.
BDO extended the facilities, covering P9.9 billion and P14.85 billion, to support First Gen’s acquisition of a 33 percent stake in Prime Hydropower Energy Inc., a firm linked to tycoon Enrique Razon Jr. The investment includes pumped storage projects such as the 600-megawatt Wawa and 1,400-megawatt Pakil developments.
At the core of the dispute are “change of management control” clauses that effectively make Piki’s continued leadership a condition for loan compliance. The Gabby-led bloc argued that these provisions bind the financial stability of the broader First Philippine Holdings Corp. group—including units like Energy Development Corp. and First Balfour—to his role.
“He has in effect threatened to torch the very house that sheltered him,” the group said, warning that even Piki’s own family stake could suffer losses.
They added that, in the event of default, loans could become immediately due, penalties imposed, and future borrowing constrained—potentially disrupting operations.
The latest disclosure follows earlier claims of “poison pill” provisions tied to asset sales, including terms that could allow Razon’s Prime Infrastructure Capital Inc. to acquire stakes in gas and hydropower assets at steep discounts if leadership changes occur.
The Gabby group maintained it was neither consulted nor adequately informed about these transactions, underscoring growing governance tensions within one of the country’s most prominent business families.
In late February, the Gabby group ousted Piki as president and chief executive officer of Lopez Inc., the privately-held company that ultimately holds the Lopez family’s investments including those in listed media, real estate, and power generation firms, for loss of confidence due to the non-disclosure of these major transactions. Piki is contesting his ouster in court.
