FIRST Gen Corp. has finalized a deal for a stake — albeit slightly smaller than earlier announced — in Prime Infrastructure Capital Inc.’s hydropower assets.
In a disclosure on Monday, Lopez-led First Gen said that subsidiary FGEN Aqua Power Holdings Inc. had executed definitive agreements to purchase 33 percent of of Prime Hydropower Energy Inc., the Prime Infra unit that will own the developers of the 1,400 megawatt (MW) Pakil and 600-MW Wawa hydroelectric power projects, for P61.87 billion.
The size and price are lower than the 40 percent and P75 billion announced by First Gen in February.
Of the P61.87 billion, P49.37 billion will be used to build both the Wawa and Pakil facilities and they will pay for the Prime Hydropower shares.
The actual number of shares to be purchased will be determined after the Securities and Exchange Commission approves Prime Hydropower’s corporate restructuring, First Gen said.
Execution of the deed of assignment and subscription agreements is hinged on the corporate regulator’s approval of the restructuring, First Gen added.
Prime Hydropower, after the restructuring, will fully own Ahunan Power Inc., the owner and developer of the Pakil project, and PMJVCo Holdings Inc., which has an 87-percent interest in Olympia Violago Water & Power Inc., the Wawa developer.
The investment “embodies First Gen’s mission to forge collaborative pathways for a decarbonized and regenerative future, crystallizing its portfolio’s shift to renewable energy,” the company said.
“Together with First Gen’s 132-MW Pantabangan-Masiway and 165-MW Casecnan hydroelectric power plants, the Wawa and Pakil plants will complement the company’s portfolio, as pumped storage hydropower facilities provide grid stability and reliability, allowing for the seamless integration of renewable energy projects into the power system,” it added.
First Gen shares on Monday fell by 54 centavos, or 3.05 percent, to close at P17.14 apiece as the broader market slumped, with the benchmark Philippine Stock Exchange index ending the day down 4.97 percent.
