First Gen shares rose another 2.4 percent to P28 on Thursday, lifting its market capitalization to about P100.7 billion and bringing its two-day gain to more than 31 percent.
The stock, now up about 58 percent since the start of the year, is trading at its highest in about four years.
A delisting would bring the curtain down on more than 20 years of public trading for First Gen, which made its PSE debut on Feb. 10, 2006, at P47 per share.
KKR makes its move
First Gen confirmed a Bilyonaryo report that KKR, which already owns 19.9 percent of the company, proposed buying another 8.43 percent from parent First Philippine Holdings Corp. and entering into a shareholders’ agreement with the Lopez-controlled company.
KKR’s reported P35-per-share offer would value First Gen at roughly P126 billion, about P25 billion above its current market value.
The global investment firm would then offer to buy the entire 11.67 percent held by public shareholders and support First Gen’s voluntary delisting from the PSE.
Higher price for control
First Gen also disclosed Thursday that KKR wants a higher price of about P46 per share to apply if a separate transaction results in someone taking control of the company, reflecting what it called a “full control premium.”
KKR emailed the preliminary and non-binding proposal last July 10 and retains the right to change or withdraw it, according to First Gen.
First Gen said the previous day it continues to evaluate the proposal.
“To date, no agreements have been signed, no formal discussions have taken place, and no advisors or consultants have been appointed by First Gen,” the company said on Wednesday.
—Edited by Miguel R. Camus
