First Gen sells 60% stake of gas unit

The transaction includes various power plants and an offshore LNG terminal.

First Gen Corporation has signed a deal for the sale of its 60% stake in its gas business to Prime Infrastructure Capital, Inc. (Prime Infra) for $897m (PHP 50b).

In a bourse filing, First Gen said the transaction leads to Prime Infra indirectly owning 60% of the issued and outstanding capital stock of the 1,000 megawatt (MW) Santa Rita Power Plant, 500 MW San Lorenzo power plant, 450 MW San Gabriel power plant, 97 MW Avion power plant, the proposed 1,200 MW Santa Maria power plant, as well as the interim offshore liquified natural gas terminal.

First Gen will also be entitled to receive additional earnout amounts, subject to the fulfilment of certain conditions.

The execution of the definitive agreements is subject to negotiation by the parties.

“The partnership between First Gen and Prime Infra will enable the partners to further nurture, enhance and expand their natural gas platforms to serve as a key solution provider to the country’s program to address energy security,” the company filing said.