Private investment firm KKR has sold its entire holding in Philippine power producer First Gen for approximately PHP25.77bn ($410.5m), ending a six-year investment in the company, according to Private Equity Wire.
Sale details
KKR disposed of 715.9 million First Gen shares through its investment vehicle Valorous Asia Holdings, according to an exchange filing cited by Private Equity Wire.
The shares represented KKR’s full 19.9% interest in the listed power company, according to the same exchange filing.
Investment firm Angsana Finance acquired the shares in the transaction.
Timing versus KKR’s prior expansion proposal
The exit comes just weeks after KKR sought to increase its exposure to First Gen.
In August, KKR proposed acquiring an additional 8.43% interest from First Gen’s parent, First Philippine Holdings, in a transaction that could also have triggered a mandatory tender offer for the remaining 11.67% public float, according to Private Equity Wire.
KKR’s proposal would have valued First Gen at approximately PHP165.44bn and potentially increased KKR’s position substantially beyond its existing stake.
First Philippine Holdings subsequently rejected the offer, bringing KKR’s expansion plans to an end.
KKR’s initial entry and First Gen’s operations
KKR initially invested in First Gen in 2020 through a voluntary tender offer.
First Gen is one of the Philippines’ major energy producers, with interests spanning natural gas, renewable energy and other power-generation assets.
(Reuters is widely known as a global news agency; the report referenced by Private Equity Wire attributed the stake sale details to Reuters.)
