Prime Infra seals P50-B First Gen gas takeover

Prime Infrastructure Capital Inc. of tycoon Enrique Razon Jr. has completed its P50-billion takeover of the Lopez Group’s gas business, strengthening its foothold in the country’s natural gas sector.

- By BRIX LELIS

Prime Infra and Lopez-led First Gen Corp. has reached financial close for the transaction, which is seen to rival the $3.3-billion power venture sealed in January by business titans Manuel V. Pangilinan, Ramon Ang and Sabin Aboitiz.

After the deal’s closing, Prime Infra now owns 60 percent of four existing gas-fired facilities totaling over 2,000 megawatts and the proposed 1,200-MW Santa Maria gas plant in Batangas, while First Gen retains a 40-percent interest.

Prime Infra also commands a 60-percent stake in an offshore liquefied natural gas terminal in Batangas, with First Gen and Japan's Tokyo Gas each holding 20 percent.