Prime Infra, the infrastructure division of Filipino billionaire Enrique K. Razon Jr., is set to purchase a 60% stake in the gas assets of First Gen Corp for 50 billion pesos (approximately $896.44 million), the Philippine energy company announced Monday.
The agreement follows the signing of a term sheet, which includes plans for another upcoming facility in Batangas province, located south of Manila, according to First Gen.
First Gen, backed by the influential Lopez family, will retain the remaining 40% ownership of the gas business. The Lopez family is also known as the controlling shareholders of ABS-CBN, the Philippines’ largest media network.
This transaction is the latest major development in the country’s energy sector, coming after a $3.3 billion gas and LNG joint venture between San Miguel Corp, Aboitiz Power, and a unit of Manila Electric Co.
Proceeds from the stake sale will enable First Gen to pursue its ambitious goal of quadrupling its renewable energy capacity by 2030.
