Published June 29, 2020, 10:00 PM By Myrna M.
Velasco
New York Stock Exchange-listed
global investment firm KKR & Co. Inc. is investing P9.6 billion or US$192.2
million for 11.9-percent equity in First Gen Corporation that it acquired
through voluntary tender offer process.
The stake acquisition, which
accounts for 427,041,291 common shares of Lopez-owned First Gen and to be
firmed up this July 1, was made through the US firm’s subsidiary Valorous Asia
Holdings, which is the entity that carried out the tender offer.
“The offeror intends to acquire all
of these tendered common shares at a price of P22.50 (US$0.45) per common share
on July 1, 2020 the cross date previously set out in the offeror’s tender
documents, representing a total investment value of P9.6 billion,” KKR has
emphasized.
According to David Luboff, partner
and head of Asia Pacific Infrastructure of KKR, their company has “long viewed
First Gen as n exceptional business with a high caliber team, and we have high
respect for the Lopez family for building this strong, well-established
company.”
The equity acquisition, he said, is
“an exciting and further milestone for KKR’s Asia Pacific business.”
First Gen currently has 3,492
megawatts of installed capacity in its power generating portfolio that are
mainly leaning on clean energy technologies, such as gas and renewable energy
developments in geothermal, solar, wind and hydro.
Federico R. Lopez, chairman and
chief executive officer of First Gen said the entry of KKR through its
successful tender offer is “especially exciting given the accelerating
transition we all need to make toward a decarbonized future and we look forward
to engaging with a world class global investor, such as KKR, as we navigate the
journey ahead as partners.”
First Gen’s blueprinted major
project in the immediate term is a floating storage regasification unit (FSRU),
which is contemplated to be the first liquefied natural gas import facility for
the country. That will eventually be transformed into a more permanent onshore
terminal that will command an investment of US1.0 billion.
The Department of Energy (DOE) has
indicated that it wants that investment proposition concretized before the
current administration would bow out in 2022.
For KKR, Michael De Guzman who is
the managing director of the company’s infrastructure team, said “we continue
to look for new opportunities to support the country’s growth trajectory, its
leading companies and its families through our infrastructure, private equity,
real estate and credit investing businesses.”
KKR has already invested more than
US$1.0 billion in the Philippines, including capital infusion in other
conglomerates that also have diversified investment portfolios, including those
on health care.
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