Geothermal leader Energy Development Corporation (EDC) is all set to grow exponentially as its mother company, First Gen Corporation (First Gen), partners with Philippines Renewable Energy Holdings Corporation (PREHC) following the successful $US1.3 billion voluntary Tender Offer launched in August 2017.
EDC is the largest vertically-integrated geothermal company in the world. With 1,471MW of clean and renewable power assets under its portfolio, it is also the largest pure-play renewable energy company in the Philippines. The company has been generating power from its 222.5MW Southern Negros Geothermal Project in Valencia, Negros Oriental for over 35 years.
The First Gen and PREHC strategic partnership will bring together First Gen's significant experience in the power, utilities and energy sectors in the Philippines, with PREHC's extensive global infrastructure expertise, to support the long-term growth of EDC.
First Gen is a leading power producer in the Philippines that primarily utilizes clean and indigenous fuels such as natural gas, geothermal energy from steam, hydro-electric, wind, and solar power. The company currently has 3,489MW under its portfolio of power assets.
PREHC has just acquired 31.7% of EDC's total outstanding voting shares from existing share holders. This consortium of investors comprising funds managed by Macquarie Infrastructure and Real Assets (MIRA), and Arran Investment Pte Ltd (Arran), an affiliate of GIC Pte Ltd (GIC) will bring in its expertise in both global infrastructure and renewable energy from its consortium. They own and operate a combined installed capacity of over 11,000MW globally.
"This deal that represents the largest voluntary Tender Offer in our country's financial history demonstrates a strong vote of confidence in the direction that our country's economy is taking," said Department of Finance Secretary Carlos Dominguez said in the recently held Partnership Ceremony at Palm Grove Rockwell, Makati City.
Meanwhile, Department of Energy Secretary Alfonso Cusi congratulated First Gen and PREHC on this partnership for EDC, which has the biggest renewable energy portfolio in the country today.
David Luboff, MIRA Senior Managing Director and incoming member of EDC's Board of Directors, said: "As a world-leader in the geothermal energy industry, EDC is an important supplier of clean and sustainable power to the Philippines. We are delighted to have acquired a significant interest in such an outstanding company on behalf of our investors. We're also pleased to be forming a long-term partnership with First Gen and GIC to bring our combined expertise to EDC."
Under the new partnership, First Gen continues to hold a majority stake in EDC, maintaining day-to-day control of the company.
