Published
October 3, 2017, 10:01 PM By
Myrna M. Velasco
With the deal finally
closed on their investment tie-up, Lopez firm Energy Development Corporation
(EDC) and parent First Gen Corporation are cementing next the growth trajectory
via capacity expansions that they will undertake with newly minted partner
Philippine Renewable Energy Holdings Corporation (PREHC).
The new EDC
shareholders under PREHC are investment funds managed by Macquarie
Infrastructure and Real Assets (MIRA) and Arran Investment Pte. Ltd., affiliate
of GIC Pte Ltd. They acquired 31.7 percent of the company’s common
shareholdings for a transaction worth $1.3 billion.
Following the shares
divestment, First Gen qualified that it remains the biggest equity holder,
hence, it will still control the day-to-day operations of the company.
In a statement to the
media, EDC’s parent company has noted that the “strategic partnership will
bring together First Gen’s significant experience in the power, utilities and
energy sectors in the Philippines, with PREHC’s extensive global infrastructure
expertise, to support the long-term growth of EDC.”
EDC is generally into
renewable energy developments, and the company has indicated the investment
areas where it would continually pursue opportunities, such as in geothermal,
wind and solar power installations.
First Gen’s continuing
development pursuit in the gas industry could also be an added investment play
for the Lopez group’s new investment fund-partners.
As noted by First Gen
and EDC Chairman Federico R. Lopez, “we believe MIRA and GIC are the right
partners for this juncture in our corporate history.”
He stressed that
“they’re long-term and astute capital, they have complementary perspectives and
they’re willing to help us push the frontiers of innovation as we build EDC
into a platform that’s well-positioned for a dynamically changing energy
landscape.”
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