Posted on 08:49 PM, November 21, 2010
LOPEZ-OWNED First Gen Corp. will sell preferred shares early next year to raise funds for expansion and possibly to buy the stake of the British Gas (BG) Group in unit First Gas Holdings Corp.
First Gen President Giles B. Puno said in an interview the firm plans to raise around P7 billion through the issuance of shares.
“We’re hoping [to sell] anywhere from P5 billion to P7 billion in preferred shares. That’s for acquisitions and investments. If we’re able to acquire the stake of BG, then that’ll be used to partly fund that stake,” said Mr. Puno.
Earlier, First Gen said it might question the BG group’s decision to sell the stake to Korea Electric Power Corp. (KEPCO), pointing out that the Korean power producer is a direct competitor.
First Gen and BG Holdings own the 60-40 venture First Gas. First Gas runs the 1,000-megawatt (MW) Sta. Rita and the 500-MW San Lorenzo power plants.
The two plants in Batangas supply power to Manila Electric Co., and rely on natural gas from the Malampaya field off Palawan.
KEPCO, meanwhile, owns the 1,200-MW Ilijan power plant, also in Batangas. The plant likewise gets natural gas from Malampaya.
BG Holdings sold its 40% share in First Gas to KEPCO for $400 million in September.
Mr. Puno said First Gen is already in talks with BG to buy the latter’s stake in First Gas.
In the nine-month period that ended September, First Gen’s consolidated net income grew by 43% to $104.9 million from $31.6 million in the same period last year.
Reported net income jumped by 849% to $66.5 million from last year’s $7 million. --Emilia Narni J. David
“We’re hoping [to sell] anywhere from P5 billion to P7 billion in preferred shares. That’s for acquisitions and investments. If we’re able to acquire the stake of BG, then that’ll be used to partly fund that stake,” said Mr. Puno.
Earlier, First Gen said it might question the BG group’s decision to sell the stake to Korea Electric Power Corp. (KEPCO), pointing out that the Korean power producer is a direct competitor.
First Gen and BG Holdings own the 60-40 venture First Gas. First Gas runs the 1,000-megawatt (MW) Sta. Rita and the 500-MW San Lorenzo power plants.
The two plants in Batangas supply power to Manila Electric Co., and rely on natural gas from the Malampaya field off Palawan.
KEPCO, meanwhile, owns the 1,200-MW Ilijan power plant, also in Batangas. The plant likewise gets natural gas from Malampaya.
BG Holdings sold its 40% share in First Gas to KEPCO for $400 million in September.
Mr. Puno said First Gen is already in talks with BG to buy the latter’s stake in First Gas.
In the nine-month period that ended September, First Gen’s consolidated net income grew by 43% to $104.9 million from $31.6 million in the same period last year.
Reported net income jumped by 849% to $66.5 million from last year’s $7 million. --Emilia Narni J. David
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