First Gen Corp.’s exit from the local bourse looms as an option for the Lopez group after securing P50-billion fresh funds from its recent gas asset sale.
The company made this disclosure Friday following a news report from Insider.ph about the possibility of First Gen delisting from the Philippine Stock Exchange following its deal with Prime Infrastructure Capital Inc.
However, the publicly listed renewable energy firm clarified that no definitive decision has been made at this time.
‘First Gen Corporation confirms that delisting the company is one of the options available to it, and one that the company may consider in the future,’ the company said. ‘However, at the moment, there are no definitive plans to delist the company.’
This comes as the company continues to reposition its portfolio following the multibillion-peso gas transaction with Prime Infra, which the company earlier said would help accelerate investments in geothermal power-its most consistent and scalable renewable energy segment.
The firm has been targeting 13,000 megawatts (MW) of renewable energy capacity by 2030, a goal that remains under review but is still considered its benchmark.
First Gen currently operates 1,651 MW of clean energy facilities, with geothermal accounting for the largest share.
Share the windfall?
Carlos Lorenzo Vega, First Gen chief customer engagement officer, said recently that proceeds from the gas sale would be channeled primarily into geothermal expansion to strengthen the group’s renewable energy pipeline.
The company retained a 40-percent stake in the gas assets, which it still views as a crucial transition fuel as it scales up clean energy deployment.
Meanwhile, Juan Paolo Colet, managing director at China Bank Capital Corp., pointed out that First Gen has ample reason to consider delisting.
‘The stock price has been undervalued for a long time; the public float is very low, and there’s not a lot of trading liquidity,’ Colet said in a message.
‘After the majority sale of its gas business, perhaps the best use of its cash windfall is to give public shareholders an orderly exit via a delisting tender offer at a good price,’ he added.