Piki spurns KKR tender offer, Lopezes to keep 69% FGEN stake intact
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Piki spurns KKR tender offer, Lopezes to keep 69% FGEN stake intact

First Philippine Holdings (FPH) led by bilyonaryo chairman and CEO Federico “Piki” Rufino Lopez will not participate in global investment group Kohlberg Kravis Roberts & Company’s (KKR) ongoing tender offer worth between P3.6 billion to P6.8 billion for First Gen (FGEN) shareholders.

In a report by COL Financial, FGEN management said its parent, FPH which owns 68.6 percent of FGEN, was not interested in joining the tender offer of Philippine Clean Energy Holdings Inc. (PCEHI), a subsidiary of KKR which is a unit of KKR Asia Pacific Infrastructure Investors’ subsidiary Valorous Asia Holdings.

READ: Road to delisting? KKR wants to sit with Piki Lopez on FGEN board with new P6.8B tender offer

FGEN assured COL it would remain on the Philippine Stock Exchange with a public float of a least 13.04 percent after the tender offer of PCEHI, which would be still above the 10 percent minimum threshold.

“However, it remains uncertain at this point how the projected decline in public float would affect FGEN’s status as a component of the PSEI index (minimum float requirement of 15 percent),” said COL.

PCEHI is offering to buy between 107.897 million and 205 million shares at P33 per share.

KKR, which already has a 12.59 percent stake in FGEN from Valorous’ P9.6 billion tender offer in 2020, is seeking to jack up its stake to as much as 18.3 percent in order to snag at a seat on FGEN’s nine-member board.

KKR Asia Pacific Infrastructure head David Simon Luboff is an adviser on FGEN’s board.

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