Philippine power giant First Gen rebuffs foreign offers, plans up to US$2.6 billion in expansion
Proposals from KKR and Barito Renewables reveal a valuation gap as the group prioritises renewable growth
[MANILA] Philippines’ largest independent power producer First Gen is pressing ahead with plans to invest up to 160 billion pesos (US$2.6 billion) in renewable energy over the next five years, after its parent rejected US private-equity company KKR’s stake proposal and the group ruled out selling its geothermal arm to Indonesia’s Barito Renewables.
First Gen is controlled by the Lopez family, a prominent business dynasty in the Philippines with roots in Iloilo, through its parent company, First Philippine Holdings (FPH), which is listed in the Philippine Stock Exchange (PSE).
With a market capitalisation of more than 65 billion pesos and shares trading at 19 pesos on the PSE, First Gen is doubling down on expansion despite foreign offers valuing the group and its renewable assets well above their implied stock market valuations.
