Enrique Razon's Prime Infra Acquires Majority Stake in First Gen’s Gas Assets
Prime Infra, the infrastructure investment arm of Filipino billionaire Enrique K. Razon Jr., has entered into an agreement to acquire a 60% stake in First Gen Corporation’s gas assets. The transaction is valued at approximately 50 billion Philippine pesos, equivalent to about $896 million.
Details of the Acquisition and Strategic Context
The companies have executed a term sheet outlining the transaction, which includes another upcoming energy facility located in Batangas province, just south of Manila. This strategic purchase marks a significant shift in ownership, with the influential Lopez family retaining the remaining 40% stake in the gas business.
The Lopez family, controlling shareholders of First Gen, are also known for their ownership of ABS-CBN, the Philippines' largest broadcasting network.
Implications for First Gen’s Renewable Energy Ambitions
This divestment is part of First Gen’s broader strategy to substantially expand its renewable energy portfolio. The company aims to quadruple its renewable energy capacity by 2030, reflecting a strong commitment to sustainable growth and clean energy transformation.
The sale proceeds will provide First Gen with capital to accelerate these renewable initiatives, ensuring alignment with the global shift toward cleaner energy solutions.
Recent Developments in the Philippine Energy Sector
The deal follows other major moves within the Philippine energy market, including a recently announced $3.3 billion joint venture focused on gas and liquefied natural gas (LNG). This venture involved collaborations between prominent local and international players, signaling robust investment interest and dynamic growth prospects in the region’s energy landscape.
Summary of Key Details
- Buyer: Prime Infra (Enrique K. Razon Jr.)
- Seller: First Gen Corporation (Lopez Family)
- Transaction Value: 50 billion PHP (~$896 million)
- Stake Acquired: 60% of gas assets
- Location of Facility: Batangas province, Philippines
- First Gen’s Goal: Quadruple renewable capacity by 2030