First Gen and Prime Infra Signed a Share Purchase Agreement for a Gas Business

​First Gen Corporation (First Gen) and Prime Infrastructure Capital, Inc. (Prime Infra)  signed a Share Purchase Agreement for the purchase by Prime Infra of a 60% equity stake in First Gen subsidiaries  relating to its gas business.

​Subject to the approval of the Philippine Competition Commission and certain conditions precedent, the transaction will result in a strategic partnership with Prime Infra indirectly owning 60% of the issued and outstanding capital stock of the 1000MW Santa Rita Power Plant, 500MW San Lorenzo power plant, 450MW San Gabriel power plant, 97MW Avion power plant, the proposed 1200MW Santa Maria power plant, as well as the Interim Offshore LNG Terminal.  First Gen will retain a 40% stake in the said projects. In consideration for the First Gen shares, Prime Infra has agreed to pay First Gen the amount of Fifty Billion Pesos (PHP 50,000,000,000.00) upon closing of the transaction, subject to adjustments and modifications as may be agreed by the parties.  First Gen will likewise be entitled to receive additional earnout amounts, subject to the fulfillment of certain conditions.
 
First Gen is a leading independent power producer in the Philippines that primarily utilizes clean and indigenous fuels such as natural gas, geothermal energy from steam, hydroelectric, wind, and solar power. The company has 3,668MW of installed capacity in its portfolio, which approximately accounts for 18% of the country’s gross generation. First Gen is a subsidiary of First Philippine Holdings Corporation, one of the most established conglomerates in the Philippines, and has over 20 years of experience in power development. It is part of the Lopez Group of Companies and is led by its Chairman, Federico R. Lopez.
 
Prime Infra is the infrastructure arm of Filipino businessman Enrique K. Razon Jr.  Prime Infra is committed to providing economically enduring, environmentally-resilient and socially-relevant projects to address urgent priorities in water, sustainable energy, and waste management and sustainable fuels. Among its assets are Manila Water Company, Inc., a publicly-listed water utility that supplies water to over 7.7 million Filipinos, and Prime Energy, the operator of the Malampaya deep water gas-to-power project.