Prime Infrastructure Capital will acquire a 60% stake in First Gen Corporation’s natural gas assets for PHP50bn (US$896m), following the signing of a term sheet between the two Philippine companies. The deal covers critical energy assets in the Philippines, including several gas-fired power plants in Batangas and First Gen’s interim LNG terminal.
Prime Infrastructure will thus own 60% of the issued and outstanding capital stock of the 1 GW Santa Rita power plant, the 500 MW San Lorenzo power plant, the 450 MW San Gabriel power plant, the 97 MW Avion power plant, and the proposed 1.2 GW Santa Maria power plant. The transaction also includes First Gen’s interim offshore LNG terminal. First Gen will retain a 40% ownership in the gas business.
First Gen is a subsidiary of First Philippine Holdings Corporation and currently has about 3.7 GW of installed capacity in the country. Its generation portfolio includes natural gas, geothermal, hydro, wind, and solar.