Filipino businessman Enrique K. Razon Jr. speaks during an interview.
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Prime Infra, the infrastructure business arm of Filipino businessman Enrique K. Razon Jr., is buying 60% of the gas assets of First Gen Corp for 50 billion pesos ($896.44 million), the Philippine energy firm said on Monday.
The parties have signed a term sheet, which shows another upcoming facility located in Batangas province, south of Manila, First Gen said in a statement.
First Gen is backed by the influential Lopez family, who will retain a 40% stake in the gas business the company is selling. The Lopez family is also the controlling shareholder of ABS-CBN, the country’s largest broadcaster.
The deal marks the latest in the Philippine energy sector, following a $3.3 billion gas and LNG joint venture unveiled by San Miguel Corp with Aboitiz Power and a unit of Manila Electric Co.
The stake sale will help First Gen go ahead with its plans to quadruple its renewable energy capacity in six years through 2030.
Read More: Filipino billionaire Razon to buy 60% stake in First Gen’s gas assets for $896