Lopez family-led First Gen Corp. has sealed a P61.875-billion investment in the pumped storage hydropower portfolio of Enrique K. Razon Jr.’s Prime Infrastructure Capital Inc., although the deal was scaled back from the originally planned 40 percent stake.

First Gen subsidiary, FGEN Aqua Power Holdings Inc. has signed an Agreement to Subscribe to and Purchase Shares with Prime Infrastructure Inc. and Prime Hydropower Energy Inc. (PHEI) on 6 March covering the revised transaction.

Instead of acquiring 40 percent of Prime Infra’s pumped storage portfolio as earlier announced, First Gen will take a 33 percent equity interest in PHEI, the entity that will own the projects once its corporate restructuring is completed.

Shareholders’ agreement on PHEI management

The parties also signed a shareholders’ agreement governing the management of PHEI once the restructuring is finalized.

“FGEN Aqua will instead acquire only a 33 percent equity interest in PHEI, the entity which will, upon completion of its corporate restructuring, own” the pumped storage assets.

PHEI will hold two major projects — the 1,400-megawatt Pakil Pumped Storage Hydroelectric Power Project in Laguna being developed by Ahunan Power Inc., and the 600-megawatt Wawa Pumped Storage Hydroelectric Power Project in Rizal owned by Olympia Violago Water & Power Inc. through PMJVCo Holdings Inc.

Purchase of existing shares and new shares subscription

The P61.875-billion investment will cover the purchase of existing shares and the subscription to new shares in PHEI.

Of the total amount, P12.5 billion will be used to acquire 6.67 percent of existing shares from Prime Infrastructure, while P49.375 billion will fund the subscription to new shares equivalent to 26.33 percent of the company.