EDC gets $5 billion offer from Indonesian group

Takeover bid for first gen unit

MANILA, Philippines — After ceding control of its natural gas business, the Lopez family’s First Gen Corp. is now confronting a $5-billion takeover bid from Indonesia’s Barito Group for Energy Development Corp. (EDC).

In a stock exchange filing yesterday, First Gen confirmed PT Barito Renewables TBK (BREN)’s unsolicited, indicative and non-binding offer to acquire EDC, the Philippines’ largest geothermal company.

The offer, first reported by Bloomberg, remains preliminary and is still subject to due diligence, the execution of transaction documents and the necessary regulatory and corporate approvals.

“To date, there have been no discussions between the parties, no agreements have been signed, and First Gen has not appointed any advisors for this transaction,” First Gen said.

If the deal pushes through, the sale of EDC could hand First Gen a significant windfall to fund its growth and expansion.

China Bank Capital Corp. managing director Juan Paolo Colet said First Gen should seriously consider monetizing its geothermal business.

Based on First Gen’s 45.8-percent economic stake in EDC, Colet noted, a $5-billion equity valuation would translate into proceeds of about $2.29 billion or roughly P141 billion at current exchange rates.

The transaction will mark a remarkable return on one of the Lopez Group’s biggest investments. In 2007, First Gen acquired EDC from the government for around P58.5 billion.

“Given First Gen’s persistent market valuation discount, such a transaction represents an opportunity to return a meaningful amount of capital to shareholders while simultaneously recycling proceeds into more profitable clean energy investments,” Colet said.

Following news of BREN’s offer, First Gen shares climbed as high as P22.30 before settling at P19.80 yesterday, up 18.42 percent from the previous day’s close of P16.72.

Stock brokerage firm COL Financial said it remains uncertain whether First Gen and its partner GIC/Macquarie Group would be willing to divest their interests in EDC.

“It’s more of a valuation issue than anything,” COL Financial chief equity strategist April Lee-Tan told The STAR yesterday.

EDC currently operates the country’s largest geothermal portfolio, with over 1,000 megawatts of capacity. It accounts for more than half of the Philippines’ total geothermal output.

BREN, on the other hand, is the renewable energy arm of Indonesian conglomerate Barito Group. The company’s portfolio includes three geothermal assets totaling 886 MW in West Java, Indonesia, representing 38 percent of the Indonesian market, according to data platform IDN Financials.

In November 2025, First Gen sold the majority stake in its gas business to Prime Infra of tycoon Enrique Razon Jr. for P50 billion, a deal that became a key source of contention within the Lopez Group.