‘Piki must go:’ Lopez majority questions energy deals

A majority faction of the Lopez clan clapped back at a Sunday statement issued by Federico “Piki” Lopez-chaired First Gen Corp., demanding explanations for the company’s recent transactions.

In a statement released through their legal counsel, Ronald Ventura, the majority faction — which represents a 71-percent stake in the family’s holding company — sought clarity on a recent P61.875-billion transaction. The deal involved the sale of majority control of First Gen’s gas assets alongside the acquisition of a 40-percent minority stake in a major hydropower business, which was later reduced to 33 percent.

“On hydropower, why reduce to 33% the 40% minority stake which carried effective veto power? Why not 33 plus one share to keep that veto? This is a significant blunder akin to the Meralco sell-out fiasco Piki engineered and masterminded without consulting the family,” the statement read.

The “Meralco sell-out fiasco” referenced by the group pertains to the Lopez family’s loss of control over Meralco between 2009 and 2012. At the time, financial pressures at the parent level forced the group to divest significant shares, allowing Metro Pacific Investments Corp., led by Manuel V. Pangilinan, to emerge as the controlling stakeholder.

The transaction ended the Lopez family’s decades-long control of the country’s largest power distributor and has since been viewed internally as a strategic misstep that weakened the group’s influence in the energy sector.

On Sunday, First Gen defended the legitimacy of its recent transactions — collectively valued at about P125 billion — while reiterating its support for Piki Lopez, who currently serves as president and chief executive of the company.

“First Gen, as a publicly listed company, observes with fidelity the rights of all stockholders to equal access to material information by avoiding its premature and selective disclosure, as mandated by law. This holds true for the transactions which all the members of First Gen’s Board of Directors, including chairperson and CEO Federico R. Lopez and director Manuel L. Lopez, unanimously approved,” the company said.

However, less than 24 hours later, the majority faction escalated its criticism, questioning Lopez’s leadership. It had previously raised questions regarding the legitimacy of the energy transactions and called for a full audit.

“Piki acts like a king without accountability. In reality, he is a salaried corporate officer equivalent to a professional manager with one qualifying share who is in power by the majority’s tolerance,” the majority said.

The ongoing dispute has also led to Lopez’s removal as president and chief executive of Lopez Inc., the group’s parent company, for “cause and loss of trust as a result of questionable transactions worth billions of pesos he entered into.” His ouster has been temporarily blocked after he secured a writ of preliminary injunction from the Mandaluyong Regional Trial Court prior to Holy Week.

The majority said the conflict also stems from disagreements over the use of proceeds from the Prime Infra transactions. Former ABS-CBN chairman Eugenio “Gabby” Lopez III and allied family members had pushed for additional financial support for ABS-CBN Corp., while Piki Lopez opposed the move, citing declining profitability.

The majority faction represents three branches of the Lopez family, while Piki Lopez represents the fourth branch under Oscar Lopez. Both First Gen and ABS-CBN have issued statements supporting the younger Lopez.

“Because of Piki’s opaque one-man rule, we are blind to where the group is headed. The blunders he made, like giving up full control and the reduction in our stake to 33%, are his but it is us and the public shareholders who will suffer. Piki must go and we will fight tooth and nail to get him out,” the majority added, calling once again for a full audit of the company.

“Piki’s camp said the majority can look at the books but no adverse findings can be used against him. This ridiculous condition only exemplifies his unacceptable opaque management style when transparency is the norm.”