US-based investment company KKR is set to acquire a 7.3% stake in Filipino independent power producer First Gen with a PHP8.68bn ($171m) investment.
KKR intends to acquire all 262.9 million of First Gen’s common shares, at a price of PHP33 for each common share, through a block sale.
The company will make the investment via its Asia Pacific Infrastructure Fund.
Once the deal is completed, KKR will hold an ownership stake of almost 19.9% in First Gen.
KKR Infrastructure managing director Michael de Guzman said: “After having been invested in First Gen for this past year, our admiration for First Gen’s business and strategy – including its work to support the energy transition in the Philippines – as well as its Board and management team has only increased.
“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.
“This investment marks the latest milestone for KKR in the Philippines and deepens our commitment to the market.”
A subsidiary of First Philippine Holdings Corporation, First Gen generates electricity from a range of sources, including natural gas, geothermal energy from steam, hydroelectric, wind and solar.
The company has 3,495MW of installed capacity, which accounts for 19% of the Philippines’ gross power generation.
In a statement, KKR said: “Southeast Asia is a key part of KKR’s Asia infrastructure strategy, and KKR’s new investment in First Gen extends the Firm’s track record as an active investor in the region across asset classes.”
Last April, KKR signed a definitive agreement with Indian infrastructure developer Shapoorji Pallonji Infrastructure Capital to acquire its five solar energy assets for a Rs15.54bn ($204m) total consideration.
The 317MWp solar asset portfolio consists of 169MWp of capacity located in the state of Maharashtra and 148MWp in Tamil Nadu.