First Gen Corp. said Wednesday it signed an agreement to sell a 60-percent equity stake in its gas business subsidiaries to Prime Infrastructure Capital Inc., the company of billionaire Enrique Razon Jr., for P50 billion.
Prime Energy, a unit of Prime Infra, is the operator of the Malampaya deep water gas-to-power project.
First Gen announced that the share purchase agreement follows a term sheet signed on May 30, 2025. The transaction is subject to approval from the Philippine Competition Commission and other conditions.
The deal will establish a strategic partnership, with Prime Infra indirectly owning 60 percent of several gas assets.
These include the 1,000-megawatt (MW) Santa Rita, 500-MW San Lorenzo, 450-MW San Gabriel, and 97-MW Avion power plants, along with the proposed 1,200-MW Santa Maria power plant and the interim offshore liquefied natural gas terminal.
First Gen will retain a 40-percent stake in these projects to ensure “continuity and stability of its gas operating plants,” aiming to benefit consumers through “more stable, predictable and lower prices.”
“In consideration for the First Gen shares, Prime Infra has agreed to pay First Gen the amount of P50 billion upon closing of the transaction, subject to adjustments and modifications as may be agreed by the parties,” First Gen said in a disclosure to the Philippine Stock Exchange.
The company also noted it would be entitled to additional earnout amounts if certain conditions are met.
First Gen said the partnership would allow them 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.”
First Gen is a leading independent power producer in the Philippines, primarily using clean and indigenous fuels. It has a total installed capacity of 3,668 MW, accounting for about 18 percent of the country’s gross generation.
Prime Infra focuses on environmentally resilient and socially relevant infrastructure projects, including water, sustainable energy, waste management, and sustainable fuels. Its assets include Manila Water Company Inc, a water utility serving over 7.7 million Filipinos.
