News

First Gen interested in acquiring majority stake in EDC

Philippine Stock Exchange, Manila (source: flickr/ Anna Banana!™, creative commons)
Alexander Richter 13 May 2013

First Gen, currently holding 49.7 percent in EDC is looking at increasing its share beyond 50 percent, stating its desire to increase attributable earnings from EDC to the company.

First Gen Corp. currently holdes a 49.7% stake in Energy Development Corp. (EDC) in the Philippines. The company is now looking at increasing its stake to subsequently hold a majority stake in the company.

First Gen sees the activities of EDC a perfect fit and a possibility to contribute to the overall earnings First Gen, so the company’s president Francis Giles Puno said.

Firs Gen currently holds 49.66% of the shares, the Singapore government 4.16%, International Finance Corp. (IFC), 2.5%, and other private and institutional investors hold 43.93%.

By increasing its share to over 50%, First Gen could gain increasing attribute earnings of EDC to its own earnings. .

Red Vulcan Holdings Inc., a subsidiary of First Gen, bought the government’s 60-percent stake in EDC, formerly PNOC Energy Development Corp,, for P58.5 billion in 2007 (then about $1.2 billion).

Energy Development Corp. is bullish about its project portfolio over the next 10 years and is looking to produce 500 megawatts of capacity in its international operations and additional 500 MW to 600 MW in its domestic operations.

Source: Manila Standard