First Gen says Philippines Renewable to buy stake in EDC

First Gen says Philippines Renewable to buy stake in EDC

First Gen Corp said Thursday Philippines Renewable Energy will acquire up to
31.7 percent of its geothermal unit, Energy Development Corp through a
tender offer.

The tender offer involves a minimum of 6.6 billion and a maximum of 8.9
billion common shares, representing 23.5 percent to 31.7 percent of EDC's
total outstanding voting shares, First Gen told the stock exchange.

The bidder is offering a price of P7.25 per share, a 22.3-percent premium
compared to EDC's 30-day average price of P5.93, First Gen said.
First Gen said it would keep a 60-percent controlling stake in EDC, adding
the sale would deliver approximately P14 billion to the company.

"The tender offer provides First Gen with an opportunity to realize part of
its investment in the country's largest renewable energy company," the
company said.

The transaction is a "clear vote of confidence in EDC's clean energy
platform from two of the world's largest infrastructure investors," said
First Gen and EDC Chairman Federico R. Lopez

"This will most definitely be a transformational period in the company's
40-year history," he said.

Upon completion of tender offer, Philippines Renewable Energy will be
indirectly held by a consortium funds managed by Macquarie Infrastructure
and Arran Investments, an affiliate of GIC Pte Ltd.

GIC has over $100 billion in assets under management and is Singapore's
Sovereign Wealth Fund. It has invested in the Philippines in the past
through an acquisition of shares in Century Pacific Food.

MIRA is one of the world's largest infrastructure asset managers. It manages
a $500 million in infrastructure funds spread across 6 investments in the
country since 2012.

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Link to Original Article:
http://news.abs-cbn.com/business/08/03/17/first-gen-says-philippines-renewab
le-to-buy-stake-in-edc

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com