FIRST Gen Corp. has confirmed receiving an unsolicited, nonbinding offer from Indonesia’s PT Barito Renewables Energy Tbk (BREN) to acquire its geothermal subsidiary, Energy Development Corp. (EDC), for about $5 billion.
In a clarification submitted to the stock exchange on Wednesday, First Gen said the indicative cash offer remained subject to due diligence, the execution of definitive transaction documents and regulatory approvals.
The clarification came after a report said Barito had made a takeover bid valuing EDC at more than $5 billion in equity, or as much as $7 billion including debt.
“First Gen confirms that PT Barito Renewables TBK has made an unsolicited, indicative and nonbinding offer to acquire Energy Development Corp. (EDC) for an equity value of approximately $5 billion,” the company said.
First Gen emphasized that the proposal was still at a preliminary stage.
“To date, there have been no discussions between the parties, no agreements have been signed, and First Gen has not appointed any advisors for this transaction,” it said.
EDC is the country’s largest producer of geothermal energy and is a wholly owned subsidiary of First Gen, which is one of the leading providers of renewable and low-carbon power in the Philippines.
First Gen is primarily owned and controlled by the Lopez family through their publicly listed holding company, First Philippine Holdings Corp., which holds nearly 68 percent of the renewable energy firm.
Following confirmation of the unsolicited bid for EDC, First Gen shares on Wednesday surged P3.08, or 18.42 percent, to close at P19.80 each, amid a 0.74-percent rise for the benchmark Philippine Stock Exchange index.
