Lopez-led First Gen Corporation will be unloading approximately 8.7 percent of aggregate issued and outstanding common shares via a tender offer process that its prospective taker will be applying with regulators soon.

In a formal notice, investor Philippines Clean Energy Holdings Inc. (PCEHI) has formally stipulated its interest to purchase the common shares of the existing stockholders of First Gen.

In the tender offer, the targeted shares to be disposed will comprise of a minimum 107,897,265 issued and outstanding common shares of First Gen – and that shall represent about 3.0-percent.

Additionally, the buyer-company is eyeing to corner 205,000,000 issued and outstanding common shares representing about 5.7-percent of the total issued and outstanding common shares of the Lopez firm.

PCEHI specified that applications as well as documentary-requirements for the tender offer shall be filed correspondingly with the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange.

“Copies of the tender offer report and the relevant tender offer materials will be disseminated as required by law and sent to each common shareholder separately,” PCEHI said.

Given such development, suspension of trading for First Gen shares had been enforced on Friday (August 27) at the local bourse; with the Lopez firm specifying that “we have yet to receive the TO (tender offer) report.”

First Gen is a well-entrenched player in the restructured electricity sector of the Philippines – and it is a company with very distinct preference for clean energy technologies in its portfolio – primarily renewable energy and gas as fuel for power generation.

With the depletion of the Malampaya gas field, which is the main source of fuel being fed into its gas plants, First Gen is also advancing the completion of its interim offshore liquefied natural gas (LNG) facility by fourth quarter next year.

The mix of First Gen’s RE and gas investments is seen as perfect-fit solution to the world’s climate change problems – and the company has already carved a niche in this space that is now being followed by most of its competitors in the sector.

Once its LNG terminal is completed, First Gen is likewise eyeing to expand its gas-fired power fleets with additional 1,200MW capacity; while also broadening the market of gas in the industrial sector. ###


Source: Manila Bulletin (https://mb.com.ph/2021/08/27/first-gen-to-unload-8-7-shares-via-tender-offer/?utm_source=rss&utm_medium=rss&utm_campaign=first-gen-to-unload-8-7-shares-via-tender-offer)