FIRST Philippine Holdings Corp. (FPH) has rejected Kohlberg Kravis Roberts & Co. L.P.’s (KKR) non-binding proposal to acquire part of FPH’s stake in First Gen Corp. and launch a voluntary tender offer at P35 per share.
In a disclosure on Monday, FPH said it had informed KKR of its decision after careful deliberation and consideration of the proposal.
“FPH has determined that KKR’s proposal does not represent FGEN’s true value,” the company said.
The global investment firm had offered to acquire an 8.43-percent stake in First Gen from FPH, to be followed by tender offer for the power firm’s 11.67-percent public float.
FPH did not disclose a valuation for First Gen or provide a specific price that it considered reflective of the company’s value.
The decision effectively ends FPH’s participation in the proposed transaction under the terms outlined by KKR.
On Monday, FPH shares slipped P1.00, or 0.97 percent, to close at P102.00 each while those of First First Gen sank by P3.50, or 11.4 percent, to close at P27.20, amid a 0.56-percent decline for the benchmark Philippine Stock Exchange index.
