KKR acquires Stake in First Gen through voluntary tender offer
Following the completion of a voluntary tender offer period, Valorous Asia Holdings, an entity owned by KKR investment funds, has accepted all of the 427,041,291 common shares of First Gen Corporation that were tendered by shareholders at the close of the tender offer, representing approximately 11.9 per cent of First Gen’s outstanding common shares.
The Offeror intends to acquire all of these tendered common shares at a price of (USD0.45) per common share on 1 July, 2020, the cross date previously set out in the Offeror’s tender documents, representing a total investment value of (USD192.2 million).
First Gen is one of the Philippines’ largest independent power producers and is a subsidiary of First Philippine Holdings Corporation. First Philippine Holdings is controlled by the Lopez family and is one of the most established conglomerates in the Philippines. The Company primarily generates power through renewable energy and indigenous fuel sources such as natural gas, geothermal energy from steam, hydro-electric, wind, and solar power. First Gen has 3,492 megawatts of installed capacity in its portfolio, which accounted for 21 per cent of the Philippines’ gross power generation in 2019.
David Luboff, Partner and Head of Asia Pacific Infrastructure at KKR, says: “We are thrilled to make this infrastructure investment in the Philippines in First Gen. We have long viewed First Gen as an exceptional business with a high-caliber leadership team, and we have great respect for the Lopez family for building this strong, well-established company. This is an exciting and further milestone for KKR’s Asia Pacific infrastructure business, and we are pleased to have this opportunity to be an investor in First Gen able to positively engage with the company’s management team and the Lopez family as helpful in the future.”
Federico Lopez, Chairman and Chief Executive Officer, says: “We welcome the news of KKR’s successful tender for First Gen shares and feel quite honoured of the confidence they have in our country, our company, our management and the strategic choices we’ve made toward clean energy. It’s especially exciting given the accelerating transition we all need to make toward a decarbonised future and we look forward to engaging with a world class global investor, such as KKR, as we navigate the journey ahead as partners.”
Michael de Guzman, a Managing Director on KKR’s Infrastructure team, says: “We are very pleased with the result of this tender offer and are honored to be an investor in First Gen, a world-class infrastructure institution that plays a critical role in the lives of many Filipinos. KKR has now invested more than US$1 billion in the Philippines and we continue to look for new opportunities to support the country's growth trajectory, its leading companies and its families through our infrastructure, private equity, real estate and credit investing businesses.”