First Gen Corp. has confirmed that Indonesia’s PT Barito Renewables Energy Tbk. (BREN) has made an unsolicited, non-binding offer to acquire its geothermal arm, Energy Development Corp. (EDC).

In a disclosure to the Philippine Stock Exchange dated July 15, First Gen clarified a Bloomberg report published a day earlier, confirming that Barito had submitted an indicative offer to acquire EDC for an equity value of approximately USD 5 billion.

The proposed acquisition would value EDC at more than USD 5 billion in equity, with an enterprise value of as much as USD 7 billion, including debt.

First Gen said the proposal remains at a very preliminary stage.

“To date, there have been no discussions between the parties, no agreements have been signed, and First Gen has not appointed any advisors for this transaction,” First Gen said.

EDC operates a portfolio of geothermal, hydro, wind, and solar assets in the Philippines. The company is also among the world’s largest vertically integrated geothermal energy producers. 

What are your thoughts on Barito’s unsolicited bid for EDC? Could a deal of this scale reshape the Philippine renewable energy landscape? Join the discussion.

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