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MANILA, Philippines - First Gen Corp., the power generation arm of the Lopez Group, increased yesterday its ownership in Energy Development Corp. (EDC) to over 46 percent by exercising its remaining call option.
“Exercising the remaining call option will increase our economic ownership in EDC to over 46 percent. Although there is still work to be done in terms of improving operating efficiencies, this investment affirms our belief in the strong fundamental value of EDC,” First Gen president Francis Giles Puno said.
In a report to the Philippine Stock Exchange, First Gen said it exercised its call option over 390 million common shares of stock of EDC at a price of P5.51 per share.
According to First Gen, the transaction will be made through a special block sale and covers the remainder of the 585 million shares subject of the call option agreements executed by First Gen on April 20, 2010 with each of PhilPlans First Inc., Rescom Developers Inc. and Philhealthcare Inc./Systems Technology Institute Inc.
Recently, First Gen exercised its call option over 195 million shares of EDC, its geothermal subsidiary, at P5.67 per share.
“The call option agreements grant First Gen the options over an aggregate 585 million common shares, representing approximately 3.12 percent of EDC’s total outstanding common stock, within a period of three years or up to April 2013, at the exercise price of P5.67 for the first year, P6.19 for the second year, and P6.76 for the third year,” First Gen said.
It said the exercise price of P5.51 per share represented the year one option price of P5.67, adjusted for the cash dividend of P0.16 declared by the EDC board of directors last March 15, 2011, with the record date of March 29, 2011.
“First Gen has now fully exercised its option under the call option agreements,” it said.
In 2010, First Gen’s consolidated net income went up 27 percent to $121 million from $95 million in 2009 due to higher revenues during the period.
The company’s net income attributable to the parent company went up to $70.2 million for 2010, up by 319 percent from $16.7 million posted last year.
At present, First Gen has a total installed capacity of 3,047.4 megawatts which are mostly renewable energy power facilities.
So far, the company enjoys a market share of around 20 percent in Luzon.
“Exercising the remaining call option will increase our economic ownership in EDC to over 46 percent. Although there is still work to be done in terms of improving operating efficiencies, this investment affirms our belief in the strong fundamental value of EDC,” First Gen president Francis Giles Puno said.
In a report to the Philippine Stock Exchange, First Gen said it exercised its call option over 390 million common shares of stock of EDC at a price of P5.51 per share.
According to First Gen, the transaction will be made through a special block sale and covers the remainder of the 585 million shares subject of the call option agreements executed by First Gen on April 20, 2010 with each of PhilPlans First Inc., Rescom Developers Inc. and Philhealthcare Inc./Systems Technology Institute Inc.
Recently, First Gen exercised its call option over 195 million shares of EDC, its geothermal subsidiary, at P5.67 per share.
“The call option agreements grant First Gen the options over an aggregate 585 million common shares, representing approximately 3.12 percent of EDC’s total outstanding common stock, within a period of three years or up to April 2013, at the exercise price of P5.67 for the first year, P6.19 for the second year, and P6.76 for the third year,” First Gen said.
It said the exercise price of P5.51 per share represented the year one option price of P5.67, adjusted for the cash dividend of P0.16 declared by the EDC board of directors last March 15, 2011, with the record date of March 29, 2011.
“First Gen has now fully exercised its option under the call option agreements,” it said.
In 2010, First Gen’s consolidated net income went up 27 percent to $121 million from $95 million in 2009 due to higher revenues during the period.
The company’s net income attributable to the parent company went up to $70.2 million for 2010, up by 319 percent from $16.7 million posted last year.
At present, First Gen has a total installed capacity of 3,047.4 megawatts which are mostly renewable energy power facilities.
So far, the company enjoys a market share of around 20 percent in Luzon.
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