NY group eyes more FGen shares worth up to P 6.8B

New York-based private equity group KKR is eyeing another slice of shares in Lopez-led First Gen Corp., this time by up to 5.7 percent of the total at P33 apiece through a likely P6.8-billion acquisition move.

In a tender offer report, KKR subsidiary Philippines Clean Energy Holding Inc. (PCEHI) said it wanted to acquire through secondary sale from existing First Gen shareholders at least about 108 million and up to 205 million issued and outstanding common shares—representing 3 percent to 5.7 percent of the total stock.

The tender offer, which stands on Sept. 1-29, represents purchases totaling at least P3.56 billion and up to P6.76 billion.

First Gen voluntarily halted trading on Aug. 27-31 in order to give shareholders equal access to the report.

PCEHI noted that over the past 10 quarters, common shares in First Gen traded on the main board of the Philippine Stock Exchange for as high as P33.60 in the second quarter of 2020 and as low as P14.30 in the first quarter of the same year.

“The tender offer price represents a 16.61-percent premium over the last closing share price on Aug. 26, 2021 of P28.30, a 17.08 percent premium over the one-month VWAP (volume weighted average price), and a 15.69-percent premium over the twelve-month VWAP,” PCEHI said.

Based in Makati City, PCEHI is a direct subsidiary of Singapore-registered Valorous Asia Holdings II Pte. Ltd., in turn a unit of Valorous Asia Holdings Pte. Ltd. that acquired in June 2020 about 407 million common shares. INQ