Private equity giant KKR & Co is investing $171 million more to acquire an additional 7.3% stake in listed Philippines power developer First Gen Corp, raising its total ownership stake to approximately 19.9%.
In a statement Wednesday, KKR said it intends to acquire all of the 262.9 million common shares of First Gen tendered by shareholders at a price of 33 pesos (about $0.65) per common share through a block sale.
In January 2020, KKR acquired about 11.9% in First Gen Corp for $192.2 million. The acquisition, which involved 427 million common shares, was carried out by Singapore-based Valorous Asia Holdings, a wholly-owned subsidiary of KKR.
In the latest transaction, KKR said it will acquire the additional shares through its unit, Philippines Clean Energy Holding Inc.
“Today, we are pleased to have this opportunity to extend our shareholding in First Gen and support its work to provide critical energy solutions to millions of Filipinos across the country,” said Michael de Guzman, a managing director at KKR’s Infrastructure team.
This investment marks the latest milestone for KKR in the Philippines and deepens its commitment to the market, De Guzman added.
First Gen, the holding company of conglomerate First Philippine Holdings in power generation and energy-related businesses, has over 20 years of experience in power development.
Its clean energy portfolio includes natural gas, hydro, solar, and geothermal power projects. It is also developing a liquefied natural terminal in Batangas. First Philippine Holdings, controlled by the Lopez family, is one of the most established conglomerates in the Philippines.
The company has 3,495 megawatts of installed capacity in its portfolio, which accounts for 19% of the Philippines’ gross power generation.
Southeast Asia is a key part of KKR’s Asia infrastructure strategy, and KKR’s investment in First Gen extends the firm’s track record as an active investor in Southeast Asia across asset classes, according to the announcement.
In addition to First Gen, KKR’s investments in the Philippines include Pinnacle Towers, a leading independent telecom tower platform; Metro Pacific Hospitals, the country’s largest private hospitals operator and healthcare network; and Voyager Innovations, a leading technology company.
KKR makes its investment from its Asia Pacific Infrastructure Fund. The firm raised $3.9 billion for the fund, the largest in the region that focuses on infrastructure-related investments.