Prime Infra, the infrastructure arm of Filipino tycoon Enrique K. Razon Jr., has signed an agreement to acquire a 60% stake in the gas assets of First Gen for $896.44m (49.87bn pesos).
The strategic move is set to reshape the energy landscape in the Philippines.
First Gen, a company with strong ties to the influential Lopez family, was incorporated in December 1998 as a subsidiary of First Philippine Holdings Corporation (FPH).
The Lopez family, which also controls ABS-CBN, the nation’s largest broadcaster, will retain a 40% holding in the gas assets.
The acquisition is a key development in the Philippine energy sector, following a $3.3bn gas and liquefied natural gas (LNG) joint venture announced by San Miguel, Aboitiz Power and a subsidiary of Manila Electric Co.
First Gen’s divestment is aimed at supporting its ambition to quadruple its renewable energy capacity by 2030.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataUpon finalisation of the deal, Prime Infra will take ownership of several key assets including the 1GW Santa Rita Power Plant, the 500MW San Lorenzo Power Plant, the 450MW San Gabriel Power Plant, the 97MW Avion Power Plant and the planned 1.2GW Santa Maria Power Plant.
The Interim Offshore LNG Terminal is also part of the transaction.
In exchange for the shares in First Gen, Prime Infra has committed to a payment of 50bn pesos upon the closing of the deal, with potential adjustments and modifications to be mutually agreed upon by the involved parties.
Prime Infra is focused on building and operating assets that support the most urgent sustainability priorities including dependable energy supply, access to clean water and modern waste management.
