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First Gen takes control of EDC with share purchase

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Alexander Richter 21 May 2014

With the purchase of additional shares, First Gen Corp. increases its shareholding in Energy Development Corp. (EDC) from 45% to 73%, holding now an economic interest of 50.7%.

In an announcement to the Philippine Stock Exchange, First Gen Corp (FGEN) announces that it has consolidated its control over the country’s largest geothermal energy developer after purchasing additional shares from an affiliate.

First Gen said it purchased 31 million preferred shares in Energy Development Corp (EDC) held by Prime Terracota Holdings Corp for P48.5 million.

First Gen used internally-generated funds to purchase the additional shares in EDC.

Prime Terracota is owned by the retirement fund of Lopez Inc, majority owner of Lopez Holdings Corp, which in turn is the largest shareholder in First Philippine Holdings Corp, the parent firm of First Gen.

The acquisition of Prime Terracota’s shares will increase First Gen’s voting stake in EDC from 45 percent to 73 percent, as well as economic interest from 33.6 percent to 50.7 percent.

Prior to the transaction, Prime Terracota, through subsidiary Red Vulcan Holdings Corp, was the 60 percent voting and 40 percent economic owner of the geothermal firm.

First Gen posted a net income of $67.3 million in the first quarter of the year, down 23.3 percent from $87.7 million in the same period last year largely on account of the impact of Typhoon Yolanda on EDC’s geothermal plants in Leyte.

EDC accounts for over a third of First Gen’s revenues which totaled  $457 million during the period, down 7.6 percent year-on-year.”

Source: Interaksyon