<\/p>\n
FIRST GEN CORP. defended the structure of its hydropower investment with Prime Infrastructure Capital, Inc., (Prime Infra) rejecting allegations from the Lopez family majority that the corporate had agreed to a \u201cscandalous\u201d P50-billion premium within the transaction.<\/span><\/p>\n In a clarification submitted to the Philippine Stock Exchange on Wednesday, the Lopez-led power producer said the premium attached to the deal reflects investments already made by Prime Infra in developing its hydropower assets.<\/p>\n The clarification got here after the Lopez family majority questioned the structure of the unique P75-billion agreement involving Prime Infra\u2019s pumped storage hydro portfolio, claiming that First Gen Corp. Chairman Federico \u201cPiki\u201d Lopez had agreed to pay P50 billion as transaction premium and P25 billion as construction equity.<\/span><\/p>\n \u201cNote that the premium paid is a normal consideration in M&A (mergers and acquisitions) transactions, and one which is incorporated within the acquisition cost,\u201d First Gen said.<\/p>\n It added that it’s \u201cnot free, superfluous money\u201d but in consideration of Prime Infra\u2019s own investments and costs poured in over a few years that brought the projects to its de-risked state on the time of First Gen\u2019s acquisition.<\/span><\/p>\n First Gen earlier sought to accumulate a 40% stake in Prime Infra\u2019s pumped storage hydro projects, including the Wawa and Pakil facilities, for P75 billion. The corporate later reduced the planned acquisition to 33% for P62 billion.<\/p>\n The corporate also rejected allegations that the reduced stake meant surrendering strategic minority protections and giving Prime Infra absolute control over the projects.<\/p>\n First Gen said the choice to trim its stake was made after considering funding requirements for other projects in its pipeline.<\/p>\n \u201cSince First Gen has a major variety of high-potential assets within the pipeline, management thought it best to cut back the hydro investment to make certain that First Gen would have the liquidity to fund all its projects,\u201d the corporate said.<\/p>\n \u201cThese significant financial considerations outflank any rights which are provided to a 40% shareholder,\u201d it added.<\/p>\n The dispute forms a part of a broader conflict inside the Lopez family that resurfaced after the bulk bloc of Lopez, Inc. withdrew a Feb. 27 board resolution removing Mr. Lopez as president and chief executive officer.<\/p>\n The Lopez majority earlier cited lack of trust and confidence tied to the corporate\u2019s P125-billion hydropower and gas transactions, which they alleged were entered into without their knowledge. \u2014 Sheldeen Joy Talavera<\/b><\/span><\/p>\n<\/p><\/div>\n <\/p>\n","protected":false},"excerpt":{"rendered":" FIRSTGEN.COM.PH FIRST GEN CORP. defended the structure of its hydropower investment with Prime Infrastructure Capital, Inc., (Prime Infra) rejecting allegations from the Lopez family majority that the corporate had agreed to a \u201cscandalous\u201d P50-billion premium within the transaction. In a clarification submitted to the Philippine Stock Exchange on Wednesday, the Lopez-led power producer said the […]<\/p>\n","protected":false},"author":1,"featured_media":349298,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[985,1766,15001,458,3954,21183,20437,1943,3767],"class_list":["post-349297","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-deal","tag-defends","tag-dispute","tag-family","tag-gen","tag-hydro","tag-infra","tag-lopez","tag-prime"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts\/349297","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/comments?post=349297"}],"version-history":[{"count":2,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts\/349297\/revisions"}],"predecessor-version":[{"id":349300,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts\/349297\/revisions\/349300"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/media\/349298"}],"wp:attachment":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/media?parent=349297"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/categories?post=349297"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/tags?post=349297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}