The Lopez family majority has reiterated its opposition to First Gen Corporation’s proposed investment in Prime Infrastructure’s hydropower projects, arguing that the revised transaction structure still raises concerns over valuation, governance, and risk allocation.

In a statement issued on June 19, the family said First Gen’s reduced stake in the projects—from 40% to 33%—lowers the premium associated with the deal but does not address what it considers fundamental issues in the transaction.

The latest statement adds to an ongoing public debate over First Gen’s planned investment in Prime Infra’s hydropower assets, one of the largest proposed energy infrastructure transactions in the country. 

The family said the implied premium has declined to about PHP 42 billion from an earlier estimate of PHP 50 billion following the adjustment in ownership interest.

Despite the change, the group maintained that First Gen would continue to shoulder most of the investment while holding a minority stake in the projects.

“[Chairman and CEO] Piki [Federico Lopez] went all in with First Gen’s money all for the pittance of keeping his job. He and the board must explain why they failed to protect First Gen and agreed to pay PHP 42 billion, or a 200% premium,” the press statement said.

The statement also revisited concerns previously raised about the board approval process, alleging that the transaction was discussed for only an hour during an executive session and that directors were not provided advance information for review.

The family questioned whether independent directors Manuel Ayala, Alicia Rita Morales, and Edgar Chua had sufficient time to evaluate the transaction before expressing support for the deal.

The group likewise cited provisions that it claims could expose First Gen and related companies to additional obligations if First Gen Chairman and Chief Executive Officer Federico “Piki” Lopez is removed from his position, as well as potential risks from project cost increases and transmission-related expenses.

According to the family, the company lacks adequate protection against such risks because no price-adjustment mechanism was negotiated as part of the transaction.

First Gen and its independent directors have previously defended the transaction, saying it was subjected to extensive review and is aligned with the company’s long-term strategy to expand its renewable energy portfolio.

What are your thoughts on the Lopez family’s latest objections to the Prime hydropower transaction? Join the discussion.

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