EDC takes in new partner

Energy Development Corp. is primed for “future growth” with the entry of new strategic partner Philippines Renewable Energy Holdings Corp. (PREHC) following the completion of a $1.3-billion tender offer, according to First Gen. Corp.

PREHC has completed the acquisition of 31.7 percent of EDC’s total outstanding voting shares from existing shareholders.

PREHC is a consortium of investors composed of funds managed by Macquarie Infrastructure and Real Assets (Mira) and Arran Investment Pte Ltd (Arran), an affiliate of GIC Pte Ltd.

“We believe Mira and GIC are the right partners for this juncture in our corporate history [as] they’re long-term and astute capital, they have complementary perspectives and they’re willing to help us push the frontiers of innovation as we build EDC into a platform that’s well-positioned for a dynamically changing energy landscape,” said Federico R. Lopez, chair of both First Gen and EDC.

Together, Mira and GIC own and operate a combined installed capacity of over 11,000 megawatts in assets spread across the globe.

Under the new partnership, First Gen keeps its majority stake in EDC and will maintain day-to-day control of the company.

“As a world-leader in the geothermal energy industry, EDC is an important supplier of clean and sustainable power to the Philippines,” Mira senior managing director David Luboff said in a joint statement.

“We are delighted to have acquired a significant interest in such an outstanding company on behalf of our investors,” Luboff said. “We’re also pleased to be forming a long-term partnership with First Gen and GIC to bring our combined expertise to EDC.”