The potential biggest loser, though, is KKR, whose roughly P12 billion exposure could translate to about P3 billion in losses under a 25 percent haircut.
The Social Security System has more than P1 billion invested, while the Government Service Insurance System holds nearly P1 billion based on its recent closing price.
First Gen shares shed 1.78 percent to P16.56 each on Wednesday.
One trigger, steep discount
At the center is First Gen CEO Federico ‘Piki’ Lopez, with provisions allowing Prime Infrastructure Capital Inc. to buy key gas and hydropower assets for P125 billion at a discount if leadership changes.
The Lopez majority said the structure benefits only Piki and leaves shareholders exposed.
Calls for probe
“Why would one person’s job be worth billions of pesos of other people’s money? This is a scandal, and the government should investigate,” the group said.
It also called for a government probe to determine whether First Gen disclosed the poison pill clauses on time, especially as it has yet to release copies of the investment agreements.
Governance questions widen
Governance concerns deepened after questions over a P75 billion hydropower deal and the reduction of First Gen’s stake from 40 percent to 33 percent.
Aside from KKR’s holdings under HSBC, other foreign investors have exposure to First Gen through custodians such as Standard Chartered and Deutsche Bank.
These funds are likely to scrutinize the poison pill structure against global standards on transparency, shareholder protection, and corporate governance.
—Edited by Miguel R. Camus
