MANILA BULLETIN: First Gen buys EDC shares for P1.68 billion
April 12, 2010

Lopez-owned First Gen Corporation has purchased 315 million common shares from affiliate Energy Development Corporation (EDC) for P5.35 per share or for a total transaction of P1.685 billion.

In a disclosure to the Philippine Stock Exchange, First Gen corporate secretary Rachel R. Hernandez stated that “the transaction was effected through an ordinary block sale…. by Venture Securities Inc.” It was completed last April 7.

EDC is, by design, the renewable energy development arm of the Lopez group. Apart from its long-established experience in geothermal projects, the company is also pursuing ventures into other RE sources, such as hydro and wind power prospects.

EDC is also one of the vehicles now fronting for the Lopez group in its planned participation in biddings for the National Power Corporation assets. The last asset acquisition it logged was for the 305-megawatt Palinpinon-Tongonan geothermal facilities.

It must be noted that in November 2008, it was EDC which previously acquired 60-percent equity in First Gen Hydropower Corporation for the Lopez-owned First Gen Corporation has purchased 315 million common shares from affiliate Energy Development Corporation (EDC) for P5.35 per share or for a total transaction of P1.685 billion.

First Gen has been one of the power companies constantly reviewing its investment blueprint given some developments in the domestic power industry's supply-demand balance.

Apart from domestic expansion, the longer term investment plan of the company will be an overseas foray, including proposed geothermal development ventures in Indonesia.

But as far as projects in the domestic industry are concerned, EDC and First Gen have also been getting their share of attraction from prospective foreign partners.

It was gathered that a South Korean company has been eyeing participation in the planned wind power facility of EDC in Ilocos Norte; though the prospective investor noted that "discussions made with the Lopez group is still very preliminary."

At the time when First Gen was exploring the possibility of divesting 40-percent equity in Red Vulcan Holdings, its corporate vehicle in the EDC acquisition, the company has also drawn interests from array of prospective foreign investors, including a company from New Zealand and a host of Japanese firms.

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