US-based KKR behind the tender offer for FGEN shares

The tender offer bid of P33.00/share is a 16% premium over First Gen's [FGEN 28.30] last closing price of P28.30/share, and will be offered starting from 9am today (September 1st) until 12pm on September 29th.

Anyone that wants to sell shares to the bidder, Philippines Clean Energy Holding Inc. (PCEH), just needs to contact their broker and have their broker complete the transaction on their behalf. The actual transfer of shares will be done through a single block sale on October 8th. The tender offer report identified PCEH as a subsidiary of KKR, the global investment firm that is publicly traded on the New York Stock Exchange.

MB BOTTOM-LINE

KKR is the same investment firm that put $684 million into the hospital unit of Metro Pacific Investments [MPI 3.85 0.52%], $167 million into the parent company of PayMaya, and an undisclosed amount into Pinnacle Towers, the cell-tower builder.

KKR has said that our economy’s “fundamental strength” and our “young and dynamic population” make the Philippines an attractive market, even during a pandemic, so this investment in FGEN appears to be in line with KKR’s other bets that it’s placed on our middle-class growth backstopped by strong economic fundamentals.

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