LISTED Energy Development Corp. announced on Wednesday Chairman Oscar Lopez has resigned from the company’s board after parent firm First Gen Corp. took in a new partner following a successful tender offer.
EDC told the Philippine Stock Exchange (PSE) that its board had accepted the resignation of Lopez and two
other board members. Lopez would remain the company’s chairman emeritus, the same position he holds at Lopez Holdings Corp., First Philippine Holdings Corp., and Rockwell Land Corp.
The 87-year-old Lopez also currently serves as president of Lopez, Inc., Inaec Aviation Corp., and ABS-CBN Holdings Corp.
On Tuesday, First Gen announced the commencement of a strategic partnership with Philippines Renewable Energy Holdings Corp. (PREHC) as substantial shareholders in EDC.
PREHC acquired 31.7 percent of the EDC’s total outstanding voting shares for about $1.3 billion (P66.24 billion). PREHC is a consortium of investors comprising funds managed by Macquarie Infrastructure and Real Assets (MIRA), and Arran Investment Pte Ltd (Arran), an affiliate of GIC Pte Ltd (GIC).
First Gen, the majority shareholder of EDC, and its subsidiary Northern Terracotta Power Corp. (NTPC) took part in the process by tendering 992 million and 986 million shares, respectively.
Under the strategic partnership, First Gen said it retained majority voting interest and would maintain day-to-day control of the company.
“MIRA and GIC are long-term investors with a track record in both global infrastructure and renewable energy” that own and operate a combined installed capacity of more than 11,000 megawatts worldwide, First Gen said.
MIRA Senior Managing Director David Luboff said they were “pleased to be forming a long-term partnership with First Gen and GIC to bring our combined expertise to” the geothermal company.
“As a long-term investor, we believe EDC’s unique portfolio of renewable energy assets will continue to generate stable and sustainable returns,” GIC Chief Investment Officer of Infrastructure Ang Eng Seng said.
Both MIRA and GIC own and operate a combined installed capacity of more than 11,000 megawatts (MW) worldwide.
Founded in 1998, First Gen is in the business of utilizing clean and indigenous fuels including natural gas, geothermal energy from steam, hydro power, wind, and solar power.
EDC is engaged in exploring, developing, operating, and utilizing geothermal energy and other indigenous renewable energy sources for electricity generation.
Shares of EDC closed up 0.71 percent at P5.68 each on Wednesday.
EDC told the bourse on Tuesday that PREHC and First Gen intended to eventually delist EDC to minimize disruptions to existing operations and allow the bidder and tendering shareholders to finalize the transaction efficiently.
EDC said both entities would work with the management and the board of EDC “to evaluate the necessary steps needed to undertake a delisting of EDC as soon as practically possible following the close of this tender offer.”
Specific terms and procedures for delisting would be agreed at a later stage.