Lopezes withdraw Piki ouster move

The majority faction of the Lopez family has withdrawn its resolution seeking the removal of Federico “Piki” Lopez as president and chief executive officer of Lopez Inc., signaling a possible thaw in the bitter corporate dispute gripping one of the country’s most influential business clans.

In a statement issued Thursday, the faction — which controls 71 percent of shares in Lopez Inc. — said the case is now before the Court of Appeals following injunctions secured by Piki Lopez, giving both sides an opportunity to “reassess and recalibrate” for  a less damaging resolution.

“Harm has been done to everybody. Reputational damage is there. Our family has been in a fishbowl with everybody looking in,” the majority faction said.

The group also lamented what it described as “undeserved financial penalties” affecting investors and the public.

The feud stemmed from a disagreement over recent transactions entered into by family-led energy firm First Gen Corp. with another major local energy player.

The majority faction alleged the transactions were approved without proper authorization and included “poison pill” provisions worth around P24 billion that would allegedly benefit Piki Lopez and his associates if he is removed from the leadership position.

Loss of trust

Earlier reports also linked the conflict to a disagreement over the use of proceeds from First Gen, with one faction reportedly led by former ABS-CBN chairman Eugenio Lopez III allegedly pushing to use the funds to support ABS-CBN Corp., which lost its broadcast franchise in 2020.

The dispute escalated on 27 February when Piki Lopez was removed as Lopez Inc. president in a 5-2 board vote over a “loss of trust and confidence.”

Lopez later secured court orders from a Mandaluyong Regional Trial Court to block his ouster.

Tensions further intensified after Lopez filed legal actions against several relatives and corporate officers.

In a disclosure Tuesday, Lopez Holdings Corp., the family’s listed holding firm, confirmed that Piki Lopez had filed an indirect contempt case against several directors who voted to submit competing nominee lists related to the election of a new board for First Philippine Holdings Corp., which owns 54.74 percent of First Gen.

The Securities and Exchange Commission last week granted First Philippine Holdings an exemption allowing it to hold its annual stockholders meeting without electing a new board, effectively preserving the current board that includes Piki Lopez.

Ceasefire

In a separate disclosure, First Philippine Holdings said actions by the majority faction “effectively impaired” Lopez’s authority as president of Lopez Inc.

The company also clarified that Lopez filed the cases in his capacity as chief executive officer of Lopez Inc. and that neither Lopez Holdings nor First Philippine Holdings was directly involved in the intra-family legal.

The majority faction said it remained open to a ceasefire and compromise but warned it was prepared to “ramp up its efforts to protect its legal and pecuniary interests” if no agreement is reached.