Billionaire Razon To Acquire 60% Of First Gen’S Gas Assets For $896 Million

(Reuters) — Prime Infra, the infrastructure business arm of Filipino businessman Enrique K. Razon Jr., is buying 60% of the gas assets of First Gen Corp. for 50 billion pesos ($896.44 million), the Philippine energy firm said on June 2.

The parties have signed a term sheet, which shows another upcoming facility located in Batangas province, south of Manila, First Gen said in a statement.

First Gen is backed by the influential Lopez family, who will retain a 40% stake in the gas business the company is selling. The Lopez family is also the controlling shareholder of ABS-CBN, the country's largest broadcaster.

The deal marks the latest in the Philippine energy sector, following a $3.3 billion gas and LNG joint venture unveiled by San Miguel Corp. with Aboitiz Power and a unit of Manila Electric Co.

The stake sale will help First Gen go ahead with its plans to quadruple its renewable energy capacity in six years through 2030.

($1 = 55.7760 Philippine pesos)