MAJORITY shareholders of Lopez Inc. on Monday said that they had affirmed a decision to remove Fernando “Piki” Lopez as president and CEO, citing governance concerns and loss of trust.
In a joint statement, members of the Lopez family, led by Piki’s cousin Eugenio “Gabby” Lopez III, said the move was made collectively after they were allegedly excluded from key decisions involving First Gen Corp.
They said they were neither informed nor consulted on the P50-billion sale of a 60-percent stake in First Gen’s natural gas business to Prime Infrastructure Capital Inc. (Prime Infra) in November last year, as well as the P62-billion acquisition of a 33-percent interest in Prime Infra’s hydropower assets in March.
“Good corporate governance requires transparency and timely disclosures... Piki did not afford us such,” the group said.
The majority bloc, which claims to represent 71 percent of Lopez Inc., also flagged provisions in the transactions that they described as “poison pills” as these would require First Gen to pay some P24 billion and allow Prime Infra to buy out its stakes at a 25-percent discount if Lopez and his management team are removed.
They said such provisions effectively made Lopez “indispensable” as the cost of removing him would be substantial.
“It was only ethical that Piki should not have asked for or accepted the poison pill without consulting the majority shareholders,” the statement read.
The group said the decision to remove Lopez as president was not taken lightly and was not driven by any single faction, adding that Piki would remain a board member.
“Our only motive has been to do the right thing... protect the shareholders, safeguard the company and its employees, and take care of the legacy entrusted to us,” the statement added.
They also noted that they would avoid engaging in a public dispute and would instead focus on actions, emphasizing adherence to corporate governance and the long-term interests of the group.
First Gen is a member of the Lopez Group of Companies controlled by the Lopez family through privately held Lopez Inc., which is the majority shareholder of publicly listed Lopez Holdings Corp.
On Monday, Lopez Holdings shares dropped 0.11, or 2.81 percent, to close at P3.80 each and those of First Gen also slipped by P0.34, or 1.98 percent, to P16.84 apiece.
