SEC and PSE Investigate First Gen Shareholder Dispute Over Disclosure Violations

The majority shareholders of First Gen Corp. have requested intervention from the Securities and Exchange Commission and the Philippine Stock Exchange due to alleged disclosure violations related to 'poison pill' provisions in agreements with Prime Infrastructure Capital Inc. They claim First Gen failed to disclose critical clauses that ensure Federico Lopez's continued leadership, allegedly breaching market transparency rules.

The dispute involves two major transactions: Prime Infrastructure's acquisition of 60% of First Gen's gas assets for ₱50 billion and First Gen's ₱75 billion acquisition of a stake in Prime's hydropower business, adjusted later to 33%. The undisclosed provisions reportedly allow Prime to buy out First Gen's interests at a 25% discount if Lopez is removed, potentially costing First Gen ₱24 billion.

The shareholders argue that these deals, amounting to about one-third of First Gen's market capitalization, warranted consultation with them prior to board approval. They have requested a full disclosure of the investment agreements, which remains pending.