Officials from First Gen Corporation (First Gen) and Philippines Renewable Energy Holdings Corporation (PREHC) pose for a group photo during ceremonies on, October 3,2017, to mark the commencement of their strategic partnership as substantial shareholders in Energy Development Corporation (EDC). The formal ceremonies followed the success of a voluntary tender offer launched by PREHC in August 2017 to acquire up to 31.7 percent of EDC’s total outstanding voting shares from existing shareholders for approximately US$1.3 billion. It is the largest voluntary tender offer in the Philippines. 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). MIRA and GIC are longterm investors with a track record in both global infrastructure and renewable energy. The partnership ceremonies, which were held at the Rockwell Center in Makati City, were led by Federico R. Lopez (fifth from left), First Gen chairman and CEO; and David Luboff (fourth from left), MIRA senior managing director. Also in photo are (from left) Christopher Low, MIRA associate director; Richard B. Tantoco, EDC president and COO; Nicole Goh PhaikKhim, GIC vice president; Francis Giles B. Puno, First Gen president and COO; and Jon Russell, First Gen executive vice president.
Geothermal leader Energy Development Corporation (EDC) is all set to grow exponentially as its mother company, First Gen Corporation (First Gen), partners with Philippines Renewable Energy Holdings Corporation (PREHC) following the successful $US1.3 billion voluntary Tender Offer launched in August 2017.
EDC is the largest vertically-integrated geothermal company in the world. With 1,471MW of clean and renewable power assets under its portfolio, it is also the largest pure-play renewable energy company in the Philippines. The company has been generating power from its 222.5MW Southern Negros Geothermal Project in Valencia, Negros Oriental for over 35 years.
The First Gen and PREHC strategic partnership will bring together First Gen’s significant experience in the power, utilities and energy sectors in the Philippines, with PREHC’s extensive global infrastructure expertise, to support the long-term growth of EDC.
First Gen is a leading power producer in the Philippines that primarily utilizes clean and indigenous fuels such as natural gas, geothermal energy from steam, hydro-electric, wind, and solar power. The company currently has 3,489MW under its portfolio of power assets.
PREHC has just acquired 31.7% of EDC’s total outstanding voting shares from existing share holders. This 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) will bring in its expertise in both global infrastructure and renewable energy from its consortium. They own and operate a combined installed capacity of over 11,000MW globally.
“This deal that represents the largest voluntary Tender Offer in our country’s financial history demonstrates a strong vote of confidence in the direction that our country’s economy is taking,” said Department of Finance Secretary Carlos Dominguez said in the recently held Partnership Ceremony at Palm Grove Rockwell, Makati City.
Meanwhile, Department of Energy Secretary Alfonso Cusi congratulated First Gen and PREHC on this partnership for EDC, which has the biggest renewable energy portfolio in the country today.
David Luboff, MIRA Senior Managing Director and incoming member of EDC’s Board of Directors, said: “As a world-leader in the geothermal energy industry, EDC is an important supplier of clean and sustainable power to the Philippines. We are delighted to have acquired a significant interest in such an outstanding company on behalf of our investors. We’re also pleased to be forming a long-term partnership with First Gen and GIC to bring our combined expertise to EDC.”
Under the new partnership, First Gen continues to hold a majority stake in EDC, maintaining day-to-day control of the company.
The Energy Development Corporation (EDC) is a pioneer in generating 100% clean, renewable, and reliable power as an electricity supplier in the Philippines for over 40 years. With power plants all over Visayas and Mindanao, the company is one of the biggest producers of geothermal energy in Asia and is expanding its reach in the international market, allowing it to offer customers affordable energy rates. EDC also strives to provide the best customer service it can to all its clients by having helpful salespeople and easy to understand contracts. Because of all of this, it is poised to become the premier supplier of electricity for the Philippines’ Green Energy Option Program. EDC takes its mission as a renewable energy provider seriously and goes beyond sustainability by investing in programs that enhance the environment and empower its partner communities, thereby fostering regenerative development. The company has also been working toward being carbon-neutral by improving its energy efficiency, as well as implementing various greening projects to ensure that its mission to provide future generations with a better life remains intact.