Tag: First Gen

The controlling shareholders of Lopez Inc. on Wednesday escalated their criticism of controversial “poison pill” provisions tied to transactions between First Gen Corp. and Prime Infrastructure Capital Inc., warning that major institutional investors, including state pension funds, could face significant losses if the clauses are triggered.

Serious lapses in corporate governance, not a lingering family feud as some would have it, drove the decision to remove Federico “Piki” Lopez as president and chief executive officer of Lopez Inc., according to controlling shareholders.

A deepening corporate power struggle inside one of the Philippines’ most influential business families has escalated into a regulatory flashpoint, with the controlling shareholders of Lopez Inc. calling for an official probe into alleged disclosure lapses tied to major energy transactions and so-called "poison pill" provisions.

A widening family rift inside Lopez Inc. is escalating into a high-stakes corporate battle over provisions that could force listed power generation firm First Gen Corp. to sell key energy assets at a steep discount, potentially wiping out nearly P24 billion in value.

First Gen Corp., the power generation arm of the Lopez Group, said its definitive agreements with Prime Infrastructure Capital, Inc. (Prime Infra) include change-of-management control provisions that could trigger discounted asset sales, worth a total P23.5 billion, if leadership conditions are not met during a defined period.