FPHC hikes stake in First Gen Corp to 76%

MANILA, Philippines - Lopez-led power holding firm First Philippine Holdings Corp. (FPHC) has raised its stake in First Gen Corp. following the purchase of wholly-owned subsidiary FGHC International Ltd.’s 8.08-percent shareholdings in the listed power generation unit.

Based on a memorandum circular issued to its member-brokers, the Philippine Stock Exchange said it approved the execution of a block sale involving a total of 382.7 million shares in First Gen, handled by PCCI Securities.

The shares were sold at P9.35 each for a total of P3.58 billion, lifting market volume yesterday.

With the purchase of additional shares, FPHC’s stake in First Gen now stands at nearly 76 percent.

FPHC treasurer and chief finance officer and First Gen president and chief operating officer Francis Giles Puno said it was an intercompany transaction, allowing FPHC to own all its shares in First Gen directly.

Previously, FPHC’s stake was partially held through FGHC International.

First Gen is the leading clean and renewable energy company in the Philippines with an installed capacity of 2,822.4 megawatts. This accounts for about 18.8 percent of the country’s total installed capacity. Its plants are spread across all three Philippine grids – Luzon, Visayas and Mindanao.

The company’s Santa Rita and San Lorenzo plants use indigenous natural gas while water runs the Pantabangan-Masiway and Agusan mini-hydroelectric plants.

At present, First Gen’s power plants have long-term contracts with Meralco, electric cooperatives and/or Napocor, while the 1.6-MW Agusan mini-hydroelectric plants’ offtaker is Cepalco.

First Gen also has supply contracts with electric cooperatives and other distribution utilities.