Insider Spotlight
His comments came after First Gen Corp. confirmed that Indonesia’s PT Barito Renewables TBK had submitted an unsolicited, indicative and non-binding offer valuing EDC at about $5 billion.
First Gen, led by chair and CEO Federico “Piki” Lopez, said in an earlier regulatory filing that there have been no discussions between the parties, no agreements have been signed, and it has not appointed advisers for any transaction.
Asked whether the MVP group would consider making a rival bid if EDC were eventually put up for sale, Pangilinan said it was too early to speculate.
“We’ll cross the bridge when we build it, so to speak. Difficult to say,” he told reporters on Wednesday.
EDC a good fit for Meralco
Pangilinan, however, acknowledged the geothermal producer would fit well with MGEN’s renewable energy business.
“Well, it’s renewable, so it might be a good addition to the renewables of MGEN,” he said, referring to Meralco PowerGen Corp.
“But we are not under any discussion with any of the family whatsoever, EDC or any part of the Lopez group,” he added.
Deal expert weighs in
"Whether MVP's interest ultimately translates into an MGen bid for EDC remains to be seen. Nonetheless, his comments highlight the significant value of the company and raise the prospect that EDC may be in play for a major [mergers and acquisition] deal," Juan Paolo Colet, managing director at China Bank Capital, said in a text message.
"A potential MGen bid for the country's premier geothermal asset could reflect efforts to diversify its generation portfolio and manage regulatory and market risks as pressure mounts to reform EPIRA and bring down power prices," he added.
Ownership
News of the PT Barito Renewables offer sent First Gen shares soaring when it was first reported by Bloomberg. The stock is now trading 14 percent higher since the start of 2026 and 17 percent higher over the past 12 months.
First Gen controlled EDC through a 65 percent voting stake while holding a 45.8 percent economic interest, with the remaining 34.9 percent owned by Philippine Renewable Energy Holdings Corp., a joint venture backed by Singapore sovereign wealth fund GIC and Australia’s Macquarie Group.
Philippine Renewable Energy Holdings had earlier indicated its interest in selling its stake.
EDC remains a key earnings contributor to First Gen, although recurring net income attributable to shareholders declined 27 percent to P6.67 billion in 2025.
—Edited by Miguel R. Camus
