PCC clears First Gen’s P50-B gas stake sale to Prime Infra

First Gen Corporation announced that it has secured clearance from the Philippine Competition Commission (PCC) for the sale of a 60 percent stake in its gas business subsidiaries to Prime Infrastructure Capital Inc. for P50 billion.

In a Friday filing to the Philippine Stock Exchange (PSE), First Gen said the PCC “has rendered a decision clearing the proposed transaction,” while also reaffirming the two parties’ commitment to “[working] towards satisfaction of all other conditions precedent.”

Assets included in the transaction are the 1,000-megawatt (MW) Santa Rita, 500-MW San Lorenzo, 450-MW San Gabriel, and 97-MW Avion power plants, as well as the proposed 1,200-MW Santa Maria plant and an interim offshore liquefied natural gas terminal.

Upon the formal closing of the transaction, First Gen will retain a minority 40 percent interest to ensure continuity and stable operations of the projects.

First Gen is one of the Philippines’ largest independent power producers, with a total capacity of 3,668 MW, accounting for about 18 percent of the country’s total generation. Meanwhile, Enrique Razon-led Prime Infra develops environmentally resilient and socially relevant infrastructure projects, including water utility Manila Water Company Inc.