First Gen sells 60% of gas business to Razon for at least P50B
Enrique Razon INQUIRER PHOTO
MANILA, Philippines — Lopez family- led First Gen Corp. (First Gen) has struck a deal to sell 60 percent of its gas business to ports and infrastructure tycoon Enrique Razon-led Prime Infrastructure Capital Inc. for at least P50 billion.
In a regulatory filing on Saturday, the energy producer said the parties had executed a term sheet, signaling Prime Infra’s entry into the group’s gas assets.
Prime Infra will hold a 60-percent stake in the following facilities in Batangas:
- 1,000-megawatt (MW) Santa Rita Power Plant
- 500-MW San Lorenzo power plant
- 450-MW San Gabriel power plant
- 97-MW Avion power plant
- the proposed 1,200-MW Santa Maria power plant
- the interim offshore liquefied natural gas terminal.
The Lopez-led firm, meanwhile, will keep the remaining 40 percent.
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With the plants touted as “investments of national significance and indispensable” to the Philippines’ power security, First Gen said this development could further develop their natural gas infrastructure.
Partnership
READ: First Gen seals deal to lease Batangas gas terminal to Razon
“In line with this, the partnership will work closely with the government to help secure our country’s energy independence,” First Gen added.
First Gen is a leading power generation firm in the local market, with 3,668 megawatts of total installed capacity from a portfolio of 33 power facilities.
Prime Infra, on the other hand, has operations in water, energy and waste management. Its key assets include Manila Water and Prime Energy.
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Prime Infra has agreed to pay First Gen P50 billion upon closing of the transaction, subject to adjustments and modifications as may be agreed by the parties, said the disclosure on Saturday.
“Moreover, First Gen will be entitled to receive additional earn-out amounts, subject to the fulfillment of certain conditions,” the disclosure said.
