In a major corporate move that underlines its long-term strategy, Lopez-led First Philippine Holdings Corporation has formally turned down an acquisition proposal from global private equity giant Kohlberg Kravis Roberts & Co. L.P. The decision preserves the parent company’s full equity control over its power generation arm, First Gen Corporation, despite an attractive financial premium offered by the international investor.
KKR had submitted a bid to acquire an 8.43 percent common share stake in First Gen directly from First Philippine Holdings at ₱35 per share, representing a total consideration of ₱10.6 billion. The proposed deal was part of a broader push by KKR to secure a combined 20 percent stake in First Gen, which included plans to launch a voluntary tender offer for 11.67 percent of First Gen’s publicly held shares at the same price point, potentially setting the stage for a delisting from the Philippine Stock Exchange.
First Philippine Holdings firmly rejected the transaction following a formal review. In a disclosure to the stock exchange, the company stated that after thorough deliberation, management concluded KKR’s offer failed to reflect First Gen’s true value. The rejection comes at a time when First Gen shares closed at ₱27.20 and First Philippine Holdings ended at ₱102.00 per share, indicating that while KKR’s ₱35 offer carried a premium over the current market price, the parent firm prefers to hold onto its core power assets.
This strategic firm stance coincides with notable shifts within the broader Lopez family empire. San Miguel Corporation chief Ramon S. Ang recently confirmed his personal acquisition of a 25.7 percent stake in Lopez Inc. through his firm, Illumina Investment Holdings Inc. Ang acquired the shares from Crème Investment Corp., the holding vehicle representing the family branch of former chairman Eugenio “Gabby” Lopez III. The sale effectively resolves a prolonged internal dispute between the Gabby Lopez branch and the faction led by First Philippine Holdings chairman and CEO Federico “Piki” Lopez, consolidating the leadership direction of the group as it moves forward.
