Philippines Clean Energy Holding Inc. (PCEHI), a subsidiary of Singapore-based Valorous Asia Holdings Pte. Ltd., offered to acquire up to 5.7% of First Gen Corporation’s outstanding common shares at Php33 per share, or a total of Php6.765 billion.
In a disclosure to the Philippine Stock Exchange on Tuesday, First Gen said it received from PCEHI a tender offer report to acquire via a secondary sale from existing shareholders a minimum of 107.9 million issued and outstanding common shares representing three percent.
First Gen also received an offer to buy up to 205 million issued and outstanding common shares, which represents a maximum of 5.7% of its total issued and outstanding common shares at Php33 apiece.
“The bidder is acquiring the tender offer shares for investment purposes. The bidder intends to continuously review its investment,” the tender offer report read.
Valorous, which currently owns 12.59% of First Gen, is led by KKR Asia Pacific Infrastructure Holdings Pte. Ltd. KKR has invested more than $1 billion in the Philippines since 2018.
Based on the company’s pubic ownership report as of June 30, the Lopezes’ First Philippine Holdings Corporation owns majority of First Gen at 67.8%. Public ownership is at 18.74%, while company officers and directors own 0.86%.
The tender offer is expected to commence this Wednesday (September 1) and will run until 12NN on September 29. The offer will allow First Gen shareholders to sell their common shares and cash in on their investments.
Valorous, through PCEHI, is expected to own at most 657.9 million common shares, or around 18.29% of First Gen’s issued and outstanding common shares upon the tender offer’s completion.
In 2020, Valorous was able to nominate and elect a director to First Gen’s board as a result of its initial investment in June that year. PCEHI may seek to nominate its candidate during the company’s next annual shareholder’s meeting come 2022.