The stock climbed to an intraday high of P22.30, up 33 percent from Tuesday’s close before trimming gains to about 18 percent as it closed the session at P19.80 each.
EDC is the country’s largest geothermal energy producer and accounts for about one-fifth of the Philippines’ installed renewable energy capacity.
First Gen, led by CEO Federico “Piki” Lopez, retains a controlling stake in the geothermal energy giant.
Bloomberg, citing people familiar with the matter, reported that Barito had submitted an offer valuing First Gen-backed EDC at more than $5 billion on an equity basis.
Minority investors should benefit
“If the deal gets done and First Gen realizes a sizable cash windfall, management should seriously consider returning capital to shareholders through a generous special cash dividend or even a tender offer,” Juan Paolo Colet, managing director at China Bank Capital, told InsiderPH.
Colet said the reported valuation implies First Gen’s nearly 46 percent economic stake is worth about $2.3 billion, or around P140 billion.
Opportunity to unlock shareholder value
“After years of persistent undervaluation and more recent corporate governance issues that have weighed on investor sentiment, public shareholders deserve a meaningful share of the value created,” Colet said.
“Aside from that, First Gen can recycle proceeds into more profitable clean energy investments,” he added.
Bloomberg: No final deal yet
The report said discussions remain ongoing and there is no certainty a transaction will be reached.
The reported bid follows a 2024 Reuters report that Singapore sovereign wealth fund GIC and Australia’s Macquarie were exploring a sale of their roughly 30 percent in EDC.
—Edited by Miguel R. Camus
