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Singapore firm offers to buy large stake in First Gen, EDC’s mother company

Bacon-Manito geothermal power plant, Philippines (source: First Gen Corp.)
Alexander Richter 27 May 2020

Singapore-based holding company is making an offer to acquire shares representing up to 9 percent stake in First Gen, the mother company of EDC, the world's largest vertically-integrated geothermal company.

Singapore-based Valorous Asia Holdings Pte. Ltd. has offered to acquire up to 9 percent of outstanding common shares of First Gen Corp. for P7.286 billion (around USD 144 million), as reported by Manila Standard.

Valorous is making the tender offer to acquire by way of secondary sale from existing shareholders a minimum of issued and outstanding common shares representing 6 percent and issued and outstanding common shares representing a maximum of 9 percent of the total issued and outstanding common shares of the company at a price of P22.50 per share.

Valorous Asia Holdings is a wholly-owned subsidiary of KKR, a leading global investment firm that manages multiple alternative asset classes including private equity, energy, infrastructure, real estate, and credit with strategic partners that manage hedge funds.

“We greatly admire First Gen as a preeminent company in the Philippines and have great respect for the Lopez family for building this strong, well-established company. KKR has made this Tender Offer in good faith and would welcome the opportunity to be a minority investor available to positively engage with First Gen’s management team and the Lopez family as helpful in the future,” said David Luboff, partner and head of Asia Pacific Infrastructure at KKR.

First Gen is the mother company of Energy Development Corporation (EDC), the world’s largest vertically integrated geothermal company, primarily engaged in the exploration, development, operation, and optimization of geothermal steamfields and in power generation.

Source: Manila Standard