First Gen Corporation (FGen) has responded to fresh allegations raised by the majority faction of the Lopez family regarding its recent P75-billion hydropower deal.

In a Wednesday afternoon disclosure to the local bourse, the Federico “Piki” Lopez-led energy company said the alleged P50-billion transaction premium paid as part of the acquisition was not “free” or “superfluous” money, but consideration for the deal partner’s years of investments and development work that brought the projects to a de-risked stage.

“Note that the premium paid is a standard consideration in M&A transactions and one that is incorporated in the acquisition cost,” FGen said.

“At that point, the projects have successfully passed the development phases of highest risk and entered a relatively stable implementation stage, with construction risk largely remaining.”

FGen also denied allegations from the Lopez majority bloc that the premium had not been disclosed to the stock exchange.

The majority faction, which claims to represent 71 percent of the shares of Lopez Inc., also alleged that Piki Lopez personally financed the hydropower acquisition. FGen dismissed the assertion as “erroneous, malicious, and show[ing] an utter lack of understanding of basic M&A transactions.”