LOPEZ-LED power producer First Gen Corp. expects to close its P75-billion acquisition deal with Razon-led Prime Infrastructure Capital, Inc. (Prime Infra) this year as it seeks approval from the competition watchdog.
“Closing of the transaction is expected to occur within the year,” First Gen said in a regulatory filing on Thursday.
After signing an initial agreement, the company said it still needs approval from the Philippine Competition Commission before completing the deal.
Once regulatory approval and other conditions are met, the company’s subsidiaries will execute the required documentation for the transfer of the underlying shares.
First Gen is set to acquire a 40% equity interest in Prime Infra’s pumped storage hydropower portfolio for P75 billion.
The transaction covers Prime Infra’s 600-megawatt (MW) Wawa pumped storage hydropower project in Rizal province and the 1,400-MW Ahunan project in Laguna.
The Lopez-led firm said the pumped storage hydropower facilities will complement its 132-MW Pantabangan-Masiway and 165-MW Casecnan hydroelectric power plants, as these are expected to provide grid stability and reliability.
“First Gen’s investment in these projects strengthens its partnership with Prime Infra and crystallizes the shift of the company’s portfolio to renewable energy,” the company said.
First Gen is an independent power producer with a total installed capacity of 3,717 MW across natural gas, geothermal, hydropower, wind, and solar technologies.
Last year, Prime Infra acquired a 60% equity stake in First Gen’s gas assets for P50 billion.
The deal covered the 1,000-MW Santa Rita power plant, the 500-MW San Lorenzo plant, the 450-MW San Gabriel plant, the 97-MW Avion plant, and the proposed 1,200-MW Santa Maria power plant.
At the local bourse on Thursday, shares in the company fell by 4.19% to close at P18.30 apiece. — Sheldeen Joy Talavera