FirstGen may drop sale of Red Vulcan stake, which holds interest in EDC
Alexander Richter
23 Nov 2009
First Gen Corp. may drop plans to sell a 40 percent stake in Red Vulcan Holdings Corp. a unit that holds a controlling interest in Energy Development Corp. (EDC)
According to local news, “Power producer First Gen Corp. (FGEN) said that it may drop plans to sell a 40 percent stake in Red Vulcan Holdings Corp. a unit that holds a controlling interest in Energy Development Corp. (EDC), the country’s largest geothermal energy generator.
“It’s probably less and less likely that we will partner. The need for it from a financing standpoint is not as great,” company president Federico Lopez said on the sidelines of the company’s special stockholders’ meeting.
“A lot of those financial issues are already behind us,” Lopez added.
First Gen has already terminated talks with Marubeni Corp. to whom the company was considering to sell up to 40 percent of Red Vulcan Holdings Corp., which holds 60 percent of EDC.
The planned equity sale in Red Vulcan was prompted by the need to pay part of the P29.2-billion loan the company used to finance the acquisition of EDC from the government.”
Source: Dow Jones via Manila Bulletin Publishing
