Entry of Macquarie, GIC to boost EDC long-term growth
FIRST GEN Corp. on Tuesday said its partnership with Philippines Renewable Energy Holdings Corp. ( PREHC) in managing Energy Development Corp. ( EDC) is expected to support the long- term growth prospects of the Lopez- led renewable energy company.
PREHC, a consortium of investors comprising funds managed by Macquarie Infrastructure and Real Assets (MIRA) and Arran Investment Pte Ltd of Singapore’s GIC Pte Ltd., became a substantial shareholder of EDC after it acquired 31.7% of the listed company through a $1.3-billion tender offer.
“We believe MIRA and GIC are the right partners for this juncture in our corporate history: they’re long-term and astute capital, they have complementary perspectives and they’re willing to help us push the frontiers of innovation as we build EDC into a platform that’s well-positioned for a dynamically changing energy landscape,” said First Gen and EDC Chairman Federico R. Lopez in a statement on Tuesday.
First Gen said it continues to hold a majority stake in EDC and maintains day-to-day control of the company.
MIRA along with Arran affiliate GIC are long-term investors with a track record in global infrastructure and renewable energy. They own and operate a combined installed capacity of over 11,000 megawatts (MW) globally.
Ang Eng Seng, chief investment officer for infrastructure at GIC, said the company believes “EDC’s unique portfolio of renewable energy assets will continue to generate stable and sustainable returns.”
“This investment in EDC marks our first infrastructure commitment to the Philippines and we look forward to growing the company with our partners in this vibrant energy market,” he said.
EDC claims to be the largest “vertically integrated geothermal company in the world” with 1,471 MW of clean and renewable power assets under its portfolio. First Gen will contribute its experience in the power, utilities and energy sectors in the partnership with PREHC. It has 3,489 MW under its portfolio of power assets.
David Luboff, MIRA senior managing director, said: “As a world-leader in the geothermal energy industry, EDC is an important supplier of clean and sustainable power to the Philippines. We are delighted to have acquired a significant interest in such an outstanding company on behalf of our investors. We’re also pleased to be forming a long-term partnership with First Gen and GIC to bring our combined expertise to EDC.”
On Tuesday, First Gen shares rose by 0.95% to P19.16 each, while EDC shares jumped by 2.36% to P5.64 each. —