First Gen rejects foreign bids and commits up to $2.6 billion to renewable expansion
First Gen, the Philippines' biggest independent power producer, turned down a KKR stake offer and a Barito Renewables bid for its geothermal arm, while announcing a 160 billion-peso investment plan for renewables over five years.
First Gen, the Philippines' largest independent power producer owned by the Lopez family through First Philippine Holdings, rejected a premium-priced offer from US private-equity firm KKR and a non-binding proposal from Barito Renewables to acquire its geothermal unit, Energy Development Corp. KKR had offered 35 pesos per share, while Barito valued EDC at over $5 billion, but both were deemed below the company's perceived value.
The firm announced a five-year capital plan of up to 160 billion pesos (approximately $2.6 billion) focused on geothermal (70 billion pesos) and hydropower (60 billion pesos) expansion, including plant upgrades in Leyte and a 440 MW geothermal project with Indonesia's Sinar Mas Group. Hydropower funding will support pumped-storage projects in partnership with Prime Infrastructure Capital. First Gen plans to tap investor appetite for financing, noting its shares trade at a significant discount to regional renewable peers. The move underscores the Philippines' rising status as a clean-energy hub in Asia-Pacific.
Why it matters
The decision keeps a major renewable asset under local control and signals strong investment in the Philippines' clean-energy future.
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